Help me..

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Lakshmi

Student

1836 Points Joined July 2009

Section 174 of The Companies Act 1956 states that ,"If within half an hour from the time fixed for the meeting a quorum is not present the meeting requisitioned by members shall stand dissolved. In any other case,it shall be adjourned to the same day in the next week, at the same time and place. If at the adjourned meeting also the quorum is not present within half an hour , the members present shall be quorum."

My doubt is that wheather this sction is applicable in the case of meeting of directors??

Guide me..

Thank you..

Replies (4)

ashish gupta

student

1922 Points Joined May 2008

this section is not applicable on meeting of directors. section 287 and 288 are applicable in case of board meeting.

Guest

No this section is not applicable.

Sec 288(1)-If the meeting of the Board couldnt be held for want of quorum.Unless the articles otherwise provide meeting of Board of directors shall stand adjourned to to the same day in the next week, at the same time and place.

the articles can only provide for adjourned meeting on some other day.

Now coming to ur second question-" If at the adjourned meeting also the quorum is not present within half an hour , the members present shall be quorum".

Sec287(2)-The quorum for meeting B.O.D shall be 1/3 of total strength or 2 directors which ever is higer.

(nly disinterested directors can form the Quorum.)