Skip to content

CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board Processes through Secretarial Standards

Lotus Pharma Pvt Ltd is a small company. It held Board meetings on 20 January and 25 April, both in the first half of the calendar year, and none in the second half. Under section 173(5), is the company deemed to have complied?

The company is not deemed compliant. Section 173(5) needs at least one Board meeting in each half of a calendar year, with a gap of not less than ninety days. Both meetings fell in the first half.

  1. AYes, because the gap between the meetings is above ninety days
  2. BYes, because two meetings were held in the year
  3. CNo, because at least one meeting must be held in each half of a calendar yearCorrect
  4. DNo, because small companies must hold four meetings

Explanation

Section 173(5) deems a small company compliant only if at least one meeting is held in each half of a calendar year and the gap between the two meetings is not less than ninety days. Both meetings fell in the first half, so the condition fails even though the count is two and the gap exceeds ninety days.

Did you get it right without looking?

One question tells you little. A timed set on Board Processes through Secretarial Standards shows your real accuracy, how long you take and where you lose marks.

Practise Board Processes through Secretarial StandardsFree diagnostic mock

More Board Processes through Secretarial Standards questions