Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Sec. 285 & 288

CS Mayur Buha (Company Secretary) (238 Points)

10 May 2010

Hello friends,

As per Section 285 of the Companies Act, 1956 the Company can conduct and convey its Board Meeting even on public holiday also and;

As per Section 288 If the Board Meeting adjorned for want of quaram it shall be adjoured sine-die, and the day of adjourend meeting is public holiday in that case the adjourned meeting shall be held on next day which is not a public holiday.

So I seek the logic behind this controversy i.e. why the sec. 285 allows to board to convey the board meeting on public holiday and why sec. 288 dosent allow to held on public holiday?

Reply
Follow
Share

3 Replies

Ankit CA and CS (Manager - Accounts) (204 Points)
Replied 10 May 2010

See like there is a provision in Sec 166 for AGM there is no such provision for BM that it shud nt take place on public holiday

Now mark words of Sec 288 "if meeting could not be held for want of quorum then it should be adjourned and if it hapnes to be public holiday it shud be on nxt day unless the article otherwise provides.

Now in two in coases adjourned BM can be hald on public holiday

1. When board voluntarily adourns the meeting(not bcoz of want of quorum) to a day which happens to be public holiday

2. When BM cud nt b hald fr wnt of quorum and it is mentioned in the articles the day of convening of Adjourned meeting and it happens to be public holiday then it will be held on that day only.

Now logic, what i undrstand is, in board shareholders are not allowed and board themshelves have to convene the meeting so it dsnt matter waht the time and place is if requisite no. of directors are there meenting can be held.