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Question
can the flag be within 2 meter to the edger of the green

Answer
Hello John:  The answer is yes but not recommended unless the green is quite small.  The following quote, taken from the article I've provided a link to and explains that there is no hard and fast rule or law governing hole placement.  (www.usga.org/workarea/linkit.aspx?linkidentifier=id&itemid.)

"In reality, there are several factors to
consider when determining a hole
location, but if it is cut on the putting
surface, it is legal.18..........

.....Hole placements as a general rule
need to be five paces from the edge
of the putting surface.21

The five-pace recommendation is a
good one on courses with large greens,
but consider that on a 5,000 sq. ft.
green, 25% of the green is in the fi vepace
area (Figure 2). There are courses
with small or irregularly shaped greens
for which the five-pace suggestion just
does not work. Using a 10' guideline
increases holeable space by 33%. An
even better guide is to make sure that a
hole is no less than 10' from the edge
of a putting surface, but only if no
hazards or steep slopes are within fi ve
paces of the edge of the green. This
allows a player enough room to have
a reasonable opportunity to recover
from a good shot that just missed the
green."

Fairways and Greens,

John
www.golfnutts.com