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No. of board meetings

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Vinay sawant

nothing

176 Points Posted on 18 June 2020

As per s.173(1) there shall be at least 4 BM in every calendar year. and it also says that the gap between 2 consecutive meetings shall not be more than 120 days.
Now let's take an example:
ABC ltd held its board meetings for calendar year 2020 as follows:
1st meeting: 31st Jan 2020
2nd meeting:1st march 2020
3rd meeting: 1st April 2020
4th meeting: 1st May 2020

Now here in this example one condition of holding at least 4 BM is satisfied.
But my doubt is will there be a contravention of provision if no meeting is held during 2020 after 1st may 2020 and next BM is held on 1st Jan 2021 which pertains to Calendar year 2021

Replies (5)

Quick Summary

This discussion clarifies the rules around the minimum number of board meetings required per calendar year, as stipulated by s.173(1). It highlights that at least four meetings must be held annually, with a maximum gap of 120 days between consecutive meetings. The example illustrates a potential contravention if no meeting occurs after May 1st and the next is scheduled for January 1st of the following year, as this exceeds the 120-day limit. Experts confirm this scenario constitutes a violation of the Companies Act and Secretarial Standard-1.

Rishab Walia

130 Points Posted on 19 June 2020

There will be no contravention
And yes the next board meeting can be held from January 2020

Vinay sawant

nothing

176 Points Posted on 19 June 2020

Thank you

Akash Sardhara

44 Points Posted on 25 June 2020

Your last meeting date is 01/05/2020 now you will arrange next meeting on 01/01/2021.....Now calculate gap between two meetings it exceeds 120 days you have to look last meeting of last year before arrange 1st meeting of subsequent year, your case is gross violation of Companies Act and Secretarial Standard-1 too.