A board meeting is a formal gathering of a Board of Directors. Most of the organizations, being public or private, profit or non-profit, are ultimately governed by a body commonly known as Board of Directors. The members of this body cyclically meet to discuss strategic matters.
All Companies registered in India are required to conduct an Annual General Meeting and file the Company Annual Return with the Ministry of Corporate Affairs. In the Company’s Annual General Meeting, the Board of Directors of the Company is required to present the Directors Report to the shareholders along with audited financial statements and Auditor’s report.
Thus, review your Board Meeting Minutes immediately after the meeting. When your board meeting minutes are complete and finished, make sure they are distributed to board members as soon as possible. Once the minutes are approved by a vote of the members during the board meeting, they become part of the official record of the organization. It’s important that a copy of all minutes are kept in one place.
The financial statement, including consolidated financial statements, if any, shall be approved by the Board of Directors before they are signed on behalf of the Board by the Chairman of the company. The Chairman is authorized by the Board or by two directors out of which one shall be managing Director if any, and the Chief Executive Officer, the Chief Financial Officer and the company secretary of the company, wherever they are appointed. In the case of One Person Company (OPC), only by one director, for submission to the auditor for his report thereon.
Only large organizations are required to produce directors’ reports. Small companies or micro-entities are exempt. A private limited company is no longer considered a small company, and must, therefore, submit a directors’ report.
Usually, the Directors’ report includes the following:
– The names of the persons who, at any time during the Financial Year, were Directors of the Company
– The amount that the Directors recommended should be paid by the way of dividend
– A statement in respect of disclosures provided to the auditors