27 December 2014
As per Section 173 (1) - "Every company shall hold the first meeting of the Board of Directors within thirty days of the date of its incorporation and thereafter hold a minimum number of four meetings of its Board of Directors every year in such a manner that not more than one hundred and twenty days shall intervene between two consecutive meetings of the Board."
MY DOUBT : Is it possible that a company holds all 4 of its Board Meetings within a span of just 1 month or 2 months or so? (Since now, there is no need to hold a meeting each quarter, as was required under the Companies Act, 1956)
31 December 2014
If you go by the wording of Section 173 you are right. However it is not possible to hold just 4 board meeting in one month and then not holding any board meeting in a year.
This because there are certain powers that can be exercised at Board meeting only which include Issue of securities,Approval of financial statement and the Board’s report, Appointment or removalof KMP,to note of the disclosure of director’s interest and shareholding etc. for which board meeting at regualar interval is necessary.
Further, meeting of the board of directors of an organization generally be held at definite intervals to consider policy issues and major problems. According to my view that is the intention of legislation thats why the word "minimum" word is used.
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