Sec 173(5) requires only 2 boad meetings to be held for small companies and minimum 90 days gap should be there Whereas 173(1) specifies max gap of 120 days.
Now if a small company have more than 2 board meetings, which section will apply ? What are your views?
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Meetings of the board for small companies
Replies (2)
As per section 173(5) of the Companies Act 2013, read with SS1, SMALL COMPANY SHALL HOLD ATLEAST ONE BOARD MEETING IN A CALENDER YEAR. AND 2 BOARD MEEING IN A CALENDER YEAR AND TIME TIME LAG BETWEEN 2 BOARD MEETING SHALL NOT BE LESS THAN 120 DAYS. IT IS THE MINIMUM BOARD MEETING REQUIREMENT IMPOSED BY THE LAW. SMALL COMPANIES CAN HOLD MORE THAN 2 BOARD MEETING AFTER FOLLOWING THE CONDITIONS GIVEN UNDER SECTION 173(5) FOR BETTER COMPLIANCE PRACTICES.
If a small company has more than 2 board meetings, then there is no bar of minimum gap (90 days) or maximum gap (120 days) between two board meetings. Only the basic conditions of section 173(5) have to be complied with which says that minimum two board meeting in each half of the calander year and the minimum gap between two board meetings should be of 90 days.
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