Frequencies Of Holding Board Meeting In A Private Limited Companies

There are different types of companies like public limited company, One Person Company, private limited company, etc. out of these private limited companies have its own advantage like privacy in the affairs of company and smooth decision making process and lesser compliances as compared to Public limited Companies.

Holding board meetings in Private limited companies as well as Public Limited Companies are governed by the provision of Companies Act, 2013 and Secretarial Standard-1 (Board Meeting).

Holding of board meetings

Under section 285 of Companies Act, 1956, the private limited companies were required to hold board meeting at least 4 times a year and at least one meeting in every 3 months. Now, this scenario has been changed in the new Companies Act.

Before holding a meeting it is mandatory to inform all the board members by sending a 7 days’ prior notice by hand delivery or by post or by electronic means to the registered address of the members before the holding Board Meeting.

Penalty of not sending proper notice:

Under section 173(4) of Companies Act 2013, a person who shall be responsible to send the notice of meetings if fails to perform his duty, then he shall be liable to a penalty of Rs. 25000. 

First Board Meeting after Incorporation:

Section 173(1) of the Companies Act 2013 states that once a company has been incorporated, company has to hold its first board meeting within 30 days of its incorporation.

Once the first board meeting is held, at least 4 board meetings shall be held in a year in such a manner that not more than 120 days gap between two consecutive board meeting.