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No of Compulsory Company Board Meetings

29 October 2008

Minimumn number of Board Meetings Of a Private Company and minimum time gap between two meetings

Can any one clarify the provisions of Section 285 of Companies Act,1956 with relevant Department Circircular about minimum no. of Board Meetings to be held each year and maximum time gap beteeen two meetings say for example : First Board meeting is held on 1st January of a particular year and Second Board meeting is held on 30th June of same year.

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20 Replies

S.Srinivasaraghavan (Chief Financial Officer and Co) (11318 Points)
Replied 29 October 2008

One meeting per quarter:

Quarters -

April - June; July-Sept; Oct-Dec; Jan-Mar.

1 Like

(Guest)

According to Section 285 of Companies act, 1956, at least one board meeting must be held in every three months and at least four such meetings must take place in every year.

I hope i have clarified ur doubt

SONU LAKHANI (B.COM,LL.B.,ACS,) (54 Points)
Replied 15 April 2009

According to company Act 1956 once in a quarter a board meeting must be held

but according to SEBI a maximum time gap between two board meeting must not be exceed 4 months

Ajay Mishra (Company Secretary) (74332 Points)
Replied 15 April 2009

Dear Devi Prasad

As per the provisions of section 285 of the Act, a company must hold at least four meetings of the Board in a year and such meeting must be held at least once in every three months. The expression "every three months" should mean three months taken togather. Provisions of this sections will be fulfilled if the Board of a company meet on the 1st of January, or the 31st of the March, or any date in between. Next three months should naturally comprise April to June. Similarly, the Board may at least meet on a particular date during July to September and so on. In section 285 as it stands, there is no scope for making backward calculation.

As per clause 49 of the listing agreement, the Board shall meet at leastt 4 times a year with a maximum time gap of three months between any two meetings.(For Listed Company)

As per Secretarial Standard on Board Meetings issued by ICSI, the Board should meet at least once in every three months, with a maximum interval of 120 days between any two meetings such that at least 4 meetings are held in eachyear.

Regards

Ajay

2 Like

Devi Prasad Ruia (Others) (39 Points)
Replied 15 April 2009

Mr. Ajay,

Thanks for your detailed clarification

But is the provision of Secretarial Standard on Board Meeting issued by ICSI (i.e. time gap of maximum 120 days between two Board meetings) applicable to Unlisted Private Company

Please clarify

VARUN (PCC STUDENT) (523 Points)
Replied 22 April 2009

yes .... i think so ... that is also applicable to unlisted companies also

CS Ekta (Company Secretary) (309 Points)
Replied 23 April 2009

Fro Listed Company , the maximum time gap between two board meetings is four months

CS Ekta (Company Secretary) (309 Points)
Replied 23 April 2009

For Listed Company, the maximum time gap between two board meetings is four months (as per clause 49)

Muralidharan (Self Employed) (1034 Points)
Replied 24 April 2009

I think that at present the secretarial standards issued by ICSI has not been made mandatory. Can anybody clarify this.

Muralidharan

Ajay Mishra (Company Secretary) (74332 Points)
Replied 24 April 2009

Dear Murlidharan

Secretarial Standard issued by the Council of the ICSI is only recommendatory in nature till it beomes mandatory by Ministry.

Till date ie April 24, 2009 the Secretarial Standard on Board Meeting is recommendatory nature.

Regards

Ajay

Sweta jain (CS) (51 Points)
Replied 25 April 2009

Is the same rule applicable for trust also....plzz suggest!!!

Ajay Mishra (Company Secretary) (74332 Points)
Replied 25 April 2009

Dear Sweta

No, because Trust is governed by the Indian Trust Act and MOA of Trust and Secretarial Standard is applicable to companies governed by Companies Act, 1956.

Regards

Sweta jain (CS) (51 Points)
Replied 02 May 2009

can i get complete details in Indian Trust Act?? SO WHICH book should i refer to ??/

Hari Gopal (Assistant Manager - Legal) (23 Points)
Replied 26 August 2009

To All,

Please update if any company fails the provision of Sec. 285 ie not conveyed the BM within the 3 month. What will the penalty for that according to Companies Act, 1956?