Board of Directors Meeting

This query is : Resolved 
 

(Querist) 16 September 2010

What are the consequences of not holding a Board of Directors meeting in an quarter.


CS Richa Sharma (Expert) 16 September 2010

As per Section 285 of Companies Act,1956, a meeting of the Board of Directors must be held at least once in every three calendar months(i.e each quarter), and there should be held at least four directors' meetings every year.

#Consequences of not holding Board Meeting:
Though there is no special penalty provided for non-compliance with the requirements of this Section,the default is punishable Under Section 629A of the Companies Act,1956. The Offence is compoundable under Section 621A of the said Act.

Ankur Garg (Expert) 16 September 2010

Agree

According to me as section 285 is silent about the penalty so penalty as provided in Section-629A shall apply.

Kindly go through section 629A.

Regards




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