What are the Meetings of Board? What is Quorum for meetings of Board? Section 173 and 174 of Indian Companies Act 2013

Meetings of Board and Quorum for meetings of Board are defined under Section 173 and 174 of Indian Companies Act 2013. Provisions under these sections are:

Section 173 of Indian Companies Act 2013 "Meetings of Board"

(1) Every company shall hold the first meeting of the Board of Directors within thirty days of the date of its incorporation and thereafter hold a minimum number of four meetings of its Board of Directors every year in such a manner that not more than one hundred and twenty days shall intervene between two consecutive meetings of the Board:

Provided that the Central Government may, by notification, direct that the provisions of this sub-section shall not apply in relation to any class or description of companies or shall apply subject to such exceptions, modifications or conditions as may be specified in the notification.

 

(2) The participation of directors in a meeting of the Board may be either in person or through video conferencing or other audio visual means, as may be prescribed, which are capable of recording and recognising the participation of the directors and of recording and storing the proceedings of such meetings along with date and time:

Provided that the Central Government may, by notification, specify such matters which shall not be dealt with in a meeting through video conferencing or other audio visual means.

(3) A meeting of the Board shall be called by giving not less than seven days’ notice in writing to every director at his address registered with the company and such notice shall be sent by hand delivery or by post or by electronic means:

Provided that a meeting of the Board may be called at shorter notice to transact urgent business subject to the condition that at least one independent director, if any, shall be present at the meeting:

Provided further that in case of absence of independent directors from such a meeting of the Board, decisions taken at such a meeting shall be circulated to all the directors and shall be final only on ratification thereof by at least one independent director, if any.

(4) Every officer of the company whose duty is to give notice under this section and who fails to do so shall be liable to a penalty of twenty-five thousand rupees.

(5) A One Person Company, small company and dormant company shall be deemed to have complied with the provisions of this section if at least one meeting of the Board of Directors has been conducted in each half of a calendar year and the gap between the two meetings is not less than ninety days:

Provided that nothing contained in this sub-section and in section 174 shall apply to One Person Company in which there is only one director on its Board of Directors.

Section 174 of Indian Companies Act 2013 "Quorum for meetings of Board"

(1) The quorum for a meeting of the Board of Directors of a company shall be one third of its total strength or two directors, whichever is higher, and the participation of the directors by video conferencing or by other audio visual means shall also be counted for the purposes of quorum under this sub-section.

(2) The continuing directors may act notwithstanding any vacancy in the Board; but, if and so long as their number is reduced below the quorum fixed by the Act for a meeting of the Board, the continuing directors or director may act for the purpose of increasing the number of directors to that fixed for the quorum, or of summoning a general meeting of the company and for no other purpose.

(3) Where at any time the number of interested directors exceeds or is equal to two thirds of the total strength of the Board of Directors, the number of directors who are not interested directors and present at the meeting, being not less than two, shall be the quorum during such time.

Explanation.—For the purposes of this sub-section, “interested director” means a director within the meaning of sub-section (2) of section 184.

(4) Where a meeting of the Board could not be held for want of quorum, then, unless the articles of the company otherwise provide, the meeting shall automatically stand adjourned to the same day at the same time and place in the next week or if that day is a national holiday, till the next succeeding day, which is not a national holiday, at the same time and place.

Explanation. - For the purposes of this section, -

(i) any fraction of a number shall be rounded off as one;

(ii) “total strength” shall not include directors whose places are vacant.

Should appointment of directors to be voted individually? What is option to adopt principle of proportional representation for appointment of directors ? Section 162 and 163 of Indian Companies Act 2013

What are the disqualifications for appointment of director? What is the maximum Number of directorships? Section 164 and 165 of Indian Companies Act 2013

What are the duties of directors? What is vacation of office of director? Section 166 and 167 of Indian Companies Act 2013

Resignation of director and Removal of directors. Section 168 and 169 of Indian Companies Act 2013

Register of directors and key managerial personnel and their shareholding, What is Members’ right to inspect? What is Punishment? Section 170, 171 and 172 of Indian Companies Act 2013

What are the Meetings of Board? What is Quorum for meetings of Board? Section 173 and 174 of Indian Companies Act 2013

What is Passing of resolution by circulation? Defects in appointment of directors not to invalidate actions taken, What is Audit Committee? Section 175, 176 and 177 of Indian Companies Act 2013

What is Nomination and Remuneration Committee and Stakeholders Relationship Committee? Section 178 of Indian Companies Act 2013

What is Powers of Board? What are the Restrictions on powers of Board? Section 179 and 180 of Indian Companies Act 2013

 

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