Board Meeting in Air?

Very good question sonia.....

As far as my knowledge is concerned the board meeting of a company can be held any where (even outside India). But a notice in writing is required mentioning time and place of the meeting. But the intention of the meeting should be bonafide. For example directors are holding this meeting in the plane just to restrain some directors from attending board meeting who would have vote against the matter which is to be conducted in such meeting than such meeting will be invalid.

And why so concerned about the place?????????

The place which is to be mentioned in notice of the meeting will be the place from where they are going to aboard (i.e. Indian Airport)

Plz pardon me if I am wrong.....

thank you Nikita

But tell me one thing; in real world is the below one is feasable

board knew well  in advance that they are leaving for some country outside india lets say USA. now due to some unavoidable reasons they dont have the time to conduct the board meeting and they all are of the view that, any how the journey duration is long hours (lets say more than 5 hours) how about discussing all the matters elaboratively during their journey and take decisions while in flieght.

now the CS of that company wants to issue to the relevant directors notice of board meeting. in such a case what place of board meeting is to be mentioned in notice

(generally this MAY happens where the company is a big conglomerate and the issues under discussion are very very important one and there is no time to defer to later or to defer to others ... for example they are acquiring some big MNC company costing some billion of dollars)

there is no ill motive behind conducting board meeting in this way .... the reason is only due to time constraints

so how the place is mentioned in notice

please share your views

thanks in advance

Sonia

Well, It can be simple ... u can mention the name of flight with time and departure of the same form that place. After all all the flights have unique identity...

Regards

Jaideep's point seems to give a practical solution.

In the absence of any provisions in the Companies Act  / AOA with regard to the place and timing of Board Meeting,  the Board Meeting can be held anywhere in the world and there is nothing wrong in holding the meeting in Air and specifying the details of Airlines in the notice of BM.

However if such a BM is held  to avoid some directors from participating in the proceedings of the meeting and the other directors take up the matter with CLB, the validity of such meeting may be questioned.  In the absence of any dispute and consent by all the directors, there is no problem.

Agree with jaideep and jaya shree

Originally posted by : nikita
	Agree with jaideep and jaya shree

 Hi ,

Sonia's Question is quite interesting. I have a question now.

Notice of Board Meeting needs to be received "reasonably in advance" as per the Act.

If one or two of the directors who is not travelling to US but would like to be part of Board Meeting, then

a. What is the Status of Board Meeting held in air ?

b. Are the transactions and the Board meeting held is valid ?. 

c. Board Resolutions of Such meeting will be effective ?

There is no such intention to avoid any director from attending the meeting.

Awaiting your valuable opinions.

regards

Santosh Shah

Originally posted by : SANTOSH SHAH
	Originally posted by : nikita Agree with jaideep and jaya shree  Hi ,   Sonia's Question is quite interesting. I have a question now. Notice of Board Meeting needs to be received "reasonably in advance" as per the Act. If one or two of the directors who is not travelling to US but would like to be part of Board Meeting, then a. What is the Status of Board Meeting held in air ? b. Are the transactions and the Board meeting held is valid ?.  c. Board Resolutions of Such meeting will be effective ? There is no such intention to avoid any director from attending the meeting.   Awaiting your valuable opinions.     regards   Santosh Shah

 Hi

Can someone advice on the questions raised by me on Board meeting validity in AIir ??

regards

Santosh Shah

Such meetings are generally held with the consent of all the Board Members. So generally the validity will not be questioned.  However as I said earlier, in case of rough weather, it may not stand the test of law.

Dear Shah

Once notice is served to directors, Its directors duty to reach to BM destination. What if BM is scheduled to be held abroad?? I think whatever director would do for such meeting, same will be applicable to your queries. I am supposing  majority of directors are present in BM.

Regards- Sudhir