Ramesh G (CA-Final ) (90 Points)
25 December 2010Hi, I am Ramesh. i have a doubt regarding board meetings, while i m doing an audit of government company, i came across one situation that the government company conducted only 3 board meetings in previous year. is this a voilation as per sec. 285 of companies act,1956? plz clarify me as soon as possible.
Thanks in advance,
Ramesh G
SWAPNIL
(Audit Assisstant)
(76 Points)
Replied 25 December 2010
Yes... It is the Violation of Companies Act as Section 285 is applicable to all class of Companies. Hence they should have conducted 4 BOD meetings in previous year.
Also it should be noted that one meeting shall be held in every 3 Calendar months. As you have specified that Company held 3 meetings in previous year make sure each and every meeting was held in the bracket of 3 months otherwise this would attract another violation.
Sandeep Pandey
(CA FINAL)
(1306 Points)
Replied 25 December 2010
| Originally posted by : SWAPNIL | ||
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Yes... It is the Violation of Companies Act as Section 285 is applicable to all class of Companies. Hence they should have conducted 4 BOD meetings in previous year. Also it should be noted that one meeting shall be held in every 3 Calendar months. As you have specified that Company held 3 meetings in previous year make sure each and every meeting was held in the bracket of 3 months otherwise this would attract another violation. |
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SACHIN garg
(ca )
(181 Points)
Replied 25 December 2010
yes there must be at least 4 board meetings with one meeting in each quarter
Dhiraj Bagri
(Manager - Finance & Accounts)
(174 Points)
Replied 27 December 2010
Dear All,
There is a provision u/s 285 that the Central Government may by notification in the official Gazette direct that the provisions of this section shall not apply in relation to any class of companies or shall apply in relation thereto subject to such exceptions.
Since it's a government company plz check out whether there is any notification wrt the same or not.
Thanks
CAclubindia
