Requirements for Conducting a Valid Board Meeting
Having a legitimate Board Meeting is essential to good corporate governance and goes beyond simple formalities. To guarantee the legitimacy of the meeting and the enforceability of the decisions made, several conditions must be carefully met. These consist of following the items on the agenda, accurately recording the minutes, and following protocol.
1. Proper Agenda: A list of the items to be discussed should be distributed with the notice. Anything which is not mentioned must not be discussed in the meeting.
2. Minutes of the Meeting: Detailed minutes of the meeting must be kept up to date and documented according to the guidelines.
3. Resolution: Resolutions are frequently used to formalize decisions, and they need to be properly documented.
4. Right Convening Authority: The Board Meeting must be held under the direction of proper authority; ie., the Company Secretary or any authorized person.
5. Proper Presiding Officer: The Board Meeting must always be conducted in the presence of a Chairman of the Board.
6. Proper Notice: A Formal Notice needs to be served to all members before conducting a Board Meeting.