{"id":5118,"date":"2020-03-20T17:01:09","date_gmt":"2020-03-20T11:31:09","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=5118"},"modified":"2022-09-09T15:24:07","modified_gmt":"2022-09-09T09:54:07","slug":"board-meeting-quorum-notice-and-requirements","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/board-meeting-quorum-notice-and-requirements\/","title":{"rendered":"Board Meeting \u2013 Meaning, Quorum, Notice and Requirements"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The\nDirector of the company may at any time call a Board meeting. On the\nrequisition of the Director, any person authorized by the Board in this behalf\nshall convene a Board Meeting. Every company shall convene a board meeting\nwithin 30 days from the date of the incorporation. However, the participation\nof the board of directors in a meeting may either be in person or through video\nconferencing.<\/p>\n\n\n\n<p>In this article, we will discuss the Board Meeting as per the <strong>Companies Act, 2013<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\"><strong>[1]<\/strong><\/a><\/sup> and the key criteria to conduct the Board Meeting.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/board-meeting-quorum-notice-and-requirements\/#What_is_the_Board_Meeting\" >What is the Board Meeting?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/board-meeting-quorum-notice-and-requirements\/#Key_Criteria_for_conducting_the_Board_Meeting\" >Key Criteria for conducting the Board Meeting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/board-meeting-quorum-notice-and-requirements\/#Board_Meeting_as_per_section_173_of_the_Companies_Act_2013\" >Board Meeting as per section 173 of the Companies Act 2013<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/board-meeting-quorum-notice-and-requirements\/#Manner_of_Participation_in_the_meeting_by_the_Directors\" >Manner of Participation in the meeting by the Directors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/board-meeting-quorum-notice-and-requirements\/#What_cannot_be_discussed_through_Video_conferencing_in_the_Board_Meeting\" >What cannot be discussed through Video conferencing in the Board Meeting?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/board-meeting-quorum-notice-and-requirements\/#Notice_of_Board_Meeting\" >Notice of Board Meeting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/board-meeting-quorum-notice-and-requirements\/#What_is_the_Ratification_thereof_by_a_majority_of_Directors\" >What is the Ratification thereof by a majority of Directors?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/board-meeting-quorum-notice-and-requirements\/#A_Quorum_of_the_Board_Meeting-Section_174_of_the_Companies_Act_2013\" >A Quorum of the\nBoard Meeting-Section 174 of the Companies Act, 2013<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/board-meeting-quorum-notice-and-requirements\/#Chairman_of_Board_Meeting\" >Chairman of Board Meeting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/board-meeting-quorum-notice-and-requirements\/#Minutes_of_the_Board_Meeting\" >Minutes of the Board Meeting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/corpbiz.io\/learning\/board-meeting-quorum-notice-and-requirements\/#Takeaway\" >Takeaway<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Board_Meeting\"><\/span>What is the Board Meeting?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is the meeting of the Board of Directors of the company (Executives or directors) to discuss certain issues or transactions related to the company. This meeting is held at a definite place and time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Criteria_for_conducting_the_Board_Meeting\"><\/span>Key Criteria for conducting the Board Meeting<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The key criteria is as follows:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Proper notice must be circulated to all the directors.<\/li><li>Adequate Quorum<\/li><li>Proper Agenda and Proper documentation<\/li><li>Presence of Chairperson.<\/li><li>Proper maintenance of Minute Book<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Board_Meeting_as_per_section_173_of_the_Companies_Act_2013\"><\/span>Board Meeting as per section 173 of the Companies Act 2013<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Section\n173 of the Companies Act, 2013 deals with the Board Meeting. As per this\nsection, every company is required to follow the below-mentioned rules and\nregulations laid down in this section as per the Companies Act 2013-<\/p>\n\n\n\n<p>Every company shall convene a board meeting <strong>within 30 days<\/strong> from the date of the incorporation after availing <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>company registration <\/strong><\/a>and thereafter hold a minimum number of <strong>4 meetings<\/strong> of its Board of Directors every year.<\/p>\n\n\n\n<p><strong>However, the meeting must\nbe held in such a manner that not more than 120 days shall intervene between 2\nconsecutive meetings of the Board.<\/strong><\/p>\n\n\n\n<p><strong><div class=\"shadow1\">Non-Applicability &#8211; <\/strong>By notification, the Central Government may direct that the\nprovisions of the above-mentioned sub-section shall not be applicable concerning\nany class or description of companies. Further, it can be applied subject to\nsuch exceptions, modifications or conditions as specified in the notification.<\/p><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Manner_of_Participation_in_the_meeting_by_the_Directors\"><\/span>Manner of Participation in the meeting by the Directors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The directors of the company can participate in a meeting either in person or through video conferencing as may be prescribed. There must be a proper record of such meetings along with date and time.<\/p>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong> By notification, the Central Government may specify such matters which cannot be dealt with in a meeting through video conferencing or other audio-visual means.<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_cannot_be_discussed_through_Video_conferencing_in_the_Board_Meeting\"><\/span>What cannot be discussed through Video conferencing in the Board Meeting?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Certain transactions cannot be discussed through Video Conferencing-<\/p>\n\n\n\n<ul><li>Matters related to the annual financial statements.<\/li><li>Matters related to the board reports.<\/li><li>Matters related to the approval of the prospectus.<\/li><li>Matters relating to amalgamation, merger, demerger, acquisition, and\ntakeover<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Notice_of_Board_Meeting\"><\/span><strong>Notice of Board Meeting<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Board Meeting shall be convened\nby giving <strong>not less than 7 days\u2019 notice<\/strong> to every director in writing at his\nregistered address mentioned in the company. The notice shall be sent either by\npost or by electronic means.<\/p>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong> In absence of registered address or in case of a change in registered address, the notice can either be sent on the address mentioned in DIN registration of the director or the on the address specified by the director.<\/div>\n\n\n\n<p><strong>Notice at a shorter period <\/strong>&#8211; To transact urgent matters, a meeting may be called at shorter notice, subject to the condition that at least <strong>1 independent director<\/strong>, if any, shall be present at the meeting. In Case of the absence of Independent Director, the decisions taken by the directors in the meeting shall be circulated to all the directors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Ratification_thereof_by_a_majority_of_Directors\"><\/span><strong>What is the Ratification thereof by a majority of Directors?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If the notice is issued to the directors at a shorter period and there is no Independent director to take the decision, the decision taken in the meeting shall be circulated to the directors of the company. Once the decision is circulated to all the directors, the decision shall be considered final only on <strong><em>Ratification thereof By a Majority of the Directors.<\/em><\/strong><\/p>\n\n\n\n<p><strong>Under this section 173<\/strong>, If the officer of the company whose duty is to give notice, fails\nto comply with the duty shall be liable to a penalty of twenty-five thousand\nrupees.<\/p>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong> In case of A One Person Company, small company and dormant company shall be deemed to have complied with the provisions of this section if &#8211;<\/div>\n\n\n\n<ul><li>At least <strong>1 Board Meeting\n<\/strong>has been conducted in each half of a calendar year and <\/li><li>The time gap between the\ntwo meetings is not less than <strong>90 days.<\/strong><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_Quorum_of_the_Board_Meeting-Section_174_of_the_Companies_Act_2013\"><\/span><strong>A Quorum of the\nBoard Meeting-Section 174 of the Companies Act, 2013<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For\nBoard Meetings, the quorum refers to the minimum number of directors required\nfor Board Meetings. For Board Meetings, the minimum number of members required\nis <strong>1\/3<sup>rd<\/sup><\/strong> of the total number of directors. In any case, (In\ncase of Interested Director) a minimum number of <strong>2 directors<\/strong> are\nnecessary.<\/p>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong> Section 174 does not apply to One Person Company.<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Chairman_of_Board_Meeting\"><\/span>Chairman of Board Meeting<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Chairman of the company shall be the chairperson of the Board Meeting. In case of the absence of Chairman, the director of the company among themselves may elect one of them to be the Chairman.<\/p>\n\n\n\n<p>It is the duty of the chairman\nwith the assistance of the Company Secretary to look after the affairs of the\nboard meeting and to keep a check that the meeting is duly convened by the\nCompanies Act, 2013.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Minutes_of_the_Board_Meeting\"><\/span>Minutes of the Board Meeting<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Every Company shall maintain a record of the meeting in a Minute Book. Minutes shall be prepared by the company following the provision of the Companies Act, 2013. There must be a proper record in the minute book maintained by the Company Secretary for that purpose. The pages of the Minute book shall be consecutively numbered.<\/p>\n\n\n\n<p>The\nMinute book shall be kept in the custody of the Company Secretary of the\nCompany. Further, the director of the company can inspect the minute book, but\nthe members of the company are not allowed to inspect the minute book.<\/p>\n\n\n\n<p>The\nchairman shall sign each page of the minute book prepared by the Company\nSecretary within a stipulated time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Takeaway\"><\/span><strong>Takeaway\n<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Board meeting requires proper planning and execution, and every company before conducting the board meeting shall comply with the provisions of the Companies Act 2013. All the documents and compliance like proper agenda, a proper quorum is required to be followed by the company. It is the responsibility of the company secretary to conduct a  meeting in such a manner as specified in the Companies Act and as per the Secretarial Standard.<\/p>\n\n\n\n<p>For more details about the compliance of the Board meeting and related services, feel free to Contact <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a>, our team of Professionals will assist you in proper compliances and execution in the related services.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/procedure-for-appointment-and-resignation-of-the-directors\/\">Companies Act 2013 Provides a Procedure for Appointment and Resignation of the Directors <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Director of the company may at any time call a Board meeting. On the requisition of the Director, any person authorized by the Board in this behalf shall convene a Board Meeting. Every company shall convene a board meeting within 30 days from the date of the incorporation. However, the participation of the board [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":5132,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[120],"tags":[411],"acf":{"service_id":"321"},"authorName":"Priyanka Bajpayee","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/03\/IMG-20220303-WA0005.jpg","authorDescription":"A Company Secretary together with PG in international Business, she has gained significant experience as legal content writer. She has keen interest in doing research and writing on legal and financial subject matters. She also holds work experience in legal compliances.","postViews":28383,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5118"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=5118"}],"version-history":[{"count":19,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5118\/revisions"}],"predecessor-version":[{"id":48556,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5118\/revisions\/48556"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/5132"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=5118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=5118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=5118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}