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Board of Directors Meetings

Prince (40 Points)

10 May 2007

Hello Brethren,

My queries are,

1) Are there any minimum number of Board of Directors meetings required to be held in a year.
2) Apart from the events for which its specifically provided for in the companies act ,that a resolution is required in the board meetings, how would one decide that a certain matter requires a BOD resolution.

Regards
Prince

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2 Replies

Sc (205 Points)
Replied 10 May 2007

Hi Prince,

Here are the answers to your questions:

1. The Companies ACt provides that there must be such number of meetings so that atleast one meeting is held every three months and four meetings are held in a year.

2. A board resolution would be required only where required under the Companies Act, Memorandum of Association or Articles of Association.

Hope this helps...

Regards

SC

Abhaysharma (CS) (53 Points)
Replied 10 May 2007

1. There should be at least one meeting every three months and at least four meeting per year.
2. There is no definite criteria to decide which matter requires a board resolution except where specifically required by the Act, MOA & AOA. Any matter having material impact on the company's business should be considered by a board resolution. Besides some authorities require a board resolution to do something, e.g. board resolution for opening bank account. In listed companies, some matters should be put before the board as per clause 49.