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Section 173 of copmpanies act 2013

Avinash Agrawal (Student CS) (27 Points)

20 September 2013

Sec. 173. (1) of the Companies Act, 2013 states that 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 120 days shall intervene between two consecutive meetings of the Board:

(Assuming that this provision is made operational) My question is if the company is incorporated on say 31st November, 2013 how many Board meetings should be held before 31.03.2014?

According to me as per the new law 5 meetings should be held before 31.03.2014. What is your opinion?

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4 Replies

Gaurav (cs Final) (57 Points)
Replied 20 September 2013

Here every year means calender year.

In this case if company incorporated on 31 november 2013, then company can only hold one board meeting within 30 days. there is no scope for holding 4 more board meeting in the year of 2013.

In my point of view company has to hold only one board meeting within 30 days.

If company hold BM earlier than 30 days than company has to hold more 4 meetings

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P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 20 September 2013

Section 173 of new Act has not yet come into force.

Here the word 'year' refers to calendar year and not financial year.

Ajay Mishra (Company Secretary) (74337 Points)
Replied 22 September 2013

Agree with Mr. Agrawal Opinion..

Please wait for few days for more clairty thereon.

komal (Student CA Final ) (21 Points)
Replied 23 October 2015

provided section 173 is that notice is to be delieverd at the director's registered adderss(whether in india or outside india).so this concept of "in india or outside india" is related with alternate and original director.

so my query is that if notice delieverd to only alternate director then can original director claim that the resolution passed is invalid in that B.M. stating that notice was not delieverd to him?

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