The board meeting is a formal gathering of the company’s board of directors to discuss and take decisions on various important issues related to the company.
The Board of directors is the authorized governing body of the company. Each organization, being public or private is governed by its board of directors.
Members of the board are known as directors, elected by the shareholders of the company. Meetings of the directors are significant to run the company more efficiently and effectively.
In other words, the board meeting is referred to as a meeting of directors. During the meeting of directors, the chairman and members of the board discuss issues related to business and take formal decisions.
5 Important points on Company’s Board Meeting
As per Companies Act 2013, here are 5 most important points related to a board meetings you must know;
- Directors in board meetings can act through a resolution passed at such a meeting.
- Meeting of the board shall be called by giving notice in writing to every director. It can be sent by hand delivery, by post or by electronic means.
- The first meeting of the board of directors shall be held within 30 days from the date of the company’s incorporation. Notice sent, in this case, must mention that it is the first meeting of the board of directors.
- Every year a minimum number of 4 board meetings shall be held in such a way that not more than 120 days shall intervene between two consecutive meetings of the board. However, in the case of a one-person company (OPC), a small company, dormant company, at least one meeting of the board of directors is to be conducted in each half of a calendar year and the gap between the two meetings is not less than 90 days. If the OPC has one director on its board of directors, then this provision is not applicable.
- The quorum of a company shall be one-third of the total strength of the board of directors or two directors, whichever is higher.
