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Committee of board (non-mandatory)

This query is : Resolved 

Hello Sir,
In a real estate company we have to execute various sale deeds on routine basis & we pass BR for the same, it's frequency is 3-4 per week. As per SS-1 we have to serve notice for calling any BM and it's nt feasible to call BM thrice a week. Accordingly, can we constitute a Committee of Board of Directors, comprises of 2 Directors, who will possess the power to sign sale deeds etc on behalf of the Board. Since, it will not be a mandatory committee SS-1 may not apply. thereafter we will present all the resolutions so passed by the committee in the next BM for the ratification of the board.

In my view any Committee formed by the Board will be treated as Commiittee to the Board and all the Rules and Regulation applicable to the Board will also be applicable to the commitee.Any decision taken by the Committee will be treated as the Decisison taken by the Board of Directors of a Company.To form and transact some business through Commitee formed by the Board does not at all means that the Committee is not stautory or the business done by the Committe is not a business done by the Board. Forma tion of Committee to the board is merely an arrangment to avoid frequent calling of Borad meeting and to keep continue wokr.Any decision taken by te Committee to the Board is equally important as taken by the Board.
Any decision taken by the Committee needs to be placed before the next Borad Meeting .

Hope your question wil be cleared.

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