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CMA Final · Corporate and Economic Laws · Board Meetings and Procedures

Bharat Textiles Ltd calls a Board meeting at shorter notice to transact urgent business. Under section 173 as reproduced, which condition must be met for the meeting to be valid?

A Board meeting can be called at shorter notice for urgent business only if at least one independent director, if any, is present at it. The law does not require consent of all directors or prior intimation to the Registrar.

  1. AAll directors must give written consent to the shorter notice
  2. BAt least one independent director, if any, must be present at the meetingCorrect
  3. CThe Registrar of Companies must be informed beforehand
  4. DThe meeting must be held at the registered office

Explanation

The first proviso to section 173(3) allows shorter notice for urgent business provided at least one independent director, if any, is present. Unanimous consent of all directors is not the stated condition.

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