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 28th Feb, 2020 then what shall be due date of next meeting?
Due date for next board meeting is 26th August, 2020 i.e. 180 days from last meeting.


2.   If Last Board Meeting held on 2nd January, 2020 then what shall be due date of next meeting?
Due date for next board meeting is 30th June, 2020 i.e. 180 days from last meeting.


3.   If Last Board Meeting held on 25th December, 2019 then what shall be due date of next meeting?
Due date for next board meeting is 22nd 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).

Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information. IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION.

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