Short Note on MCA Clarification on Provision of Board Meeting

Short Note on MCA Clarification on Provision of Board Meeting

Language of Circular:

The mandatory requirement of holding meetings of the Board of the companies within the intervals provided in section 173 of the Companies Act, 2013 (CA13) (120 days) stands extended by a period of 60 days till next two quarters i.e., till 30th September. Accordingly, as a one time relaxation the gap between two consecutive meetings of the Board may extend to 180 days till the next two quarters, instead of 120 days as required in the CA-13.

One can opine that:

As a onetime relaxation the gap between two consecutive meetings of the Board may extend to 180 days till the next two quarters, instead of 120 days as required in the CA-13

Example:

1.   If Last Board Meeting held on 28^th Feb, 2020 then what shall be due date of next meeting?

Due date for next board meeting is 26^th August, 2020 i.e. 180 days from last meeting.

2.   If Last Board Meeting held on 2^nd January, 2020 then what shall be due date of next meeting?

Due date for next board meeting is 30^th June, 2020 i.e. 180 days from last meeting.

3.   If Last Board Meeting held on 25^th December, 2019 then what shall be due date of next meeting?

Due date for next board meeting is 22^nd June, 2020 i.e. 180 days from last meeting.

 (Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com).

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