Compliance of section 283(g)

Internal Audit 637 views 2 replies

Vinayak Parab

Internal Auditor

45 Points Posted on 19 December 2013

In one of the private ltd company leave of absence for board meeting is taken verbally & no documents or mails were available for audit trail, they only add the leave of absence details in Minutes.

Now One of the director of the company has violated section 283G of companies act as he was absent in 3 consecutive board meeting for the period of more than 3 months, so when I asked the auditee about the same, he is saying that it is not a violation as permission is granted to him in the minutes of the board meeting but in my views minutes is a post meeting document & cannot be considered for the same....Experts Plz guide me....

Replies (2)

Arun Kumar

Deputy Manager Assurance

230 Points Posted on 07 January 2014

Dear Vinayak Parab,

As per Clause -4 of Secretarial Standard SS-1, Leave of absence should be granted to a Director only when a request for such leave has been communicated to the Secretary or to the Board or to the Chairman.

But I am not sure whether it is mandatory for Private Companies to follow Secretarial Standard

CS Arjun Rajagopal

B.com ACS

1056 Points Posted on 07 January 2014

Originally posted by : Arun Kumar
	Dear Vinayak Parab, As per Clause -4 of Secretarial Standard SS-1, Leave of absence should be granted to a Director only when a request for such leave has been communicated to the Secretary or to the Board or to the Chairman. But I am not sure whether it is mandatory for Private Companies to follow Secretarial Standard