Board Meetings under Companies Act, 2013
In every company, the Board of Directors is the supreme authority and has the power to make all the major decisions of the company. The board is also responsible for managing the affairs of the company.
For smooth functioning and management, Board Meetings must be held at frequent intervals. The schedule for Board Meetings is as follows:
- Section 173 of the Companies Act provides that all public and private companies must hold four board meetings in a calendar year.
- A company registered under Section 8 of the act must hold a board meeting or the government body at least once in six months.
- Small companies, Dormant companies, and One Person Companies shall come together in a meeting at least once in each half of the calendar year.
Gap between two Board Meetings: In addition to the above, as per Section 173 of the Act, 120 days is the maximum gap interval between two consecutive board meetings in a single calendar year. Also, if it is a Small Company, Dormant Company, or a One Person Company, the interval between two consecutive meetings should not be less than 90 days.