Section 173(3) of the Companies Act, 2013 requires every company to hold a board meeting at least once in every three months, and at least four such meetings must be held in a year. The notice of board meeting is essential to inform the directors about the date, time, and venue of the meeting, along with the agenda.
Purpose:
The purpose of the notice of the board meeting is to provide information about the meeting to the directors and to ensure that they have enough time to prepare for the meeting. The notice serves as a formal communication to the directors to attend the meeting and discuss the agenda items.
Applicability:
Every company registered under the Companies Act, 2013 is required to comply with Section 173(3) and issue a notice of the board meeting.
Timeline:
The notice of the board meeting must be sent to the directors at least seven days before the date of the meeting. However, in case of an urgent meeting, the notice period can be shorter, subject to the approval of the majority of the directors.
Exemption:
There is no exemption available for issuing a notice of the board meeting. The notice must be issued by the company as per the provisions of the Act.
Penalty:
Failure to issue a notice of the board meeting can attract a penalty of up to Rs. 1 lakh on the company and every officer in default, as per Section 173(4) of the Act.
Due date:
The notice of the board meeting must be sent to the directors at least seven days before the date of the meeting.
Forms:
There is no specific form prescribed for the notice of the board meeting.
Reporting authority:
The notice of the board meeting is sent to the directors of the company.
