Our Visitor

001498
Total views : 5976

Board Meeting

by

Under the Companies Act, 2013, board meetings are an essential aspect of corporate governance. Here are some key points related to board meetings under the Companies Act, 2013:

  1. Frequency of Meetings: The Act requires that every company must hold a minimum number of four board meetings in a calendar year. The gap between two consecutive meetings should not exceed 120 days. Public companies with paid-up share capital of at least 10 crore rupees or turnover of at least 100 crore rupees in the preceding financial year must have at least one independent director present at each meeting.
  2. Notice of Meeting: A notice in writing must be sent to every director at his registered address, including the agenda of the meeting, at least seven days before the date of the meeting. In certain urgent cases, a shorter notice period may be allowed, provided at least one independent director, if any, is present.
  3. Quorum: The quorum for a board meeting is one-third of the total strength of directors or two directors, whichever is higher. However, in case of a company with a sole director, that one director constitutes the quorum.
  4. Chairperson: The chairperson of the board meeting is usually the chairman of the company or, in his absence, any director elected by the directors present at the meeting.
  5. Recording Minutes: Minutes of board meetings must be prepared and entered into the books of the company within 30 days of the conclusion of the meeting. The minutes must be signed by the chairperson of the meeting or the chairperson of the next succeeding meeting.
  6. Matters to be discussed: The board meeting covers a wide range of matters, including financial statements, annual budget, appointments and removal of directors, loans and investments, related-party transactions, corporate social responsibility, and other significant business decisions.
  7. Interested Directors: A director who is in any way, whether directly or indirectly, concerned or interested in a contract or arrangement with the company must disclose his interest at the meeting and cannot participate in the discussion or vote on such matters.
  8. Participation via Video Conferencing: The Act allows directors to participate in a board meeting through video conferencing or other audio-visual means. Such participation is counted towards the quorum requirement, provided certain conditions are met.

It is important to note that the Companies Act, 2013, contains several provisions related to board meetings, and the above points provide only a brief overview. It is advisable to refer to the Act itself and consult legal professionals for detailed guidance and compliance.

  • CBDT Extends PAN-Aadhaar Link Deadline to 31st May 2024

      Circular No.6 /2024F. No. 275/412024-IT(B) is issued by the Government of India, through the Ministry of Finance and the Department of Revenue, to announce a partial modification to Circular No. 3 of 2023 dated 28.03.2023. Circular No. 3 of 2023 dated 28.03.2023 issued by the Board may be read as follows: “Consequent to the…

  • Payments to SME for compliance u/s 43B(h) of Income Tax Act

    Payments to SME for compliance u/s 43B(h) of Income Tax Act Section 43B[(h): any sum payable by the assessee to a micro or small enterprise beyond the time-limit specified in section 15 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006.),] shall be allowed (irrespective of the previous year in which the liability to pay…

  • GSTN introduces new feature to help businesses verify additional places of business

    Goods and Services Tax Network (GSTN) has introduced a new feature in the “Search Taxpayer” option to provide users with access to a list of “Additional Places of Business” (APBs). The new APB list feature can be particularly beneficial for verifying whether the customer’s billing address and place of delivery are registered before initiating the…

  • income Tax Dept launches ‘Know Your Refund Status’ on e-filing Portal

    Previously, taxpayers had to check their income tax refund status on the TIN-NSDL website. However, the Income Tax Department has now launched a new functionality called “Know Your Refund Status” on the e-filing portal that allows users to check their refund status directly from the portal itself. This functionality allows taxpayers to check the status of their…

  • Section 43B: Certain deductions to be only on actual payment.

    Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under this Act in respect of: (a) any sum payable by the assessee by way of tax, duty, cess or fee, by whatever name called, under any law for the time being in force, or (b) any sum payable by the…

  • Expenditure for any purpose which is an offence or which is prohibited by law shall not be deductible -Section 37 of I.T Act

    General Deduction : Section 37 of the Income tax act 1) Any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee), laid out or expended wholly and exclusively for the purposes of the business or profession shall be allowed…

“Real Knowledge is to know the extent of one’s ignorance

— Confucius

Related posts:

Leave a comment