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. Notice can be given out for Holding a Board Meeting.
What should be done before sending Notice for Holding a Board Meeting?
A notice is required to be sent to the Directors to intimate the date of the meeting. Furthermore, the agenda of the meeting should also be clearly mentioned in the notice. Additionally, the notice should be intimated to the Board of Directors at least 7 days prior to the date of the Board Meeting. However, if the meeting needs to be conducted at shorter notice, a resolution must be passed and recorded as below:
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 board during the next 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.
FAQs
A board meeting at shorter notice may be called by the president of the association, or by any two directors other than the president if there are circumstances that could not have been reasonably foreseen which require immediate attention and possible action by the board, and which of necessity make it impracticable to provide notice.
In case of failure to give the notice of the Board Meeting as required u/s 173, every officer of the company whose duty is to give notice shall be liable to a penalty of INR 25,000.
In terms of Section 174(1) of the Companies Act, 2013, the quorum for a Board Meeting shall be:
– One-third of its total strength of directors who are in office, or
– Two directors, whichever is higher.