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CS Executive · Setting Up of Business, Industrial and Labour Laws · Corporate Entities - Companies

Meera Textiles (OPC) Ltd, a One Person Company, has a single director on its Board. Under the Companies Act, 2013, how does the board meeting provision apply to it?

For a One Person Company with only one director, neither Section 173(5) nor Section 174 applies, so the board meeting and quorum requirements do not operate against it, as the proviso to Section 173(5) provides.

  1. AIt must hold at least two meetings in each half year with 90 days gap
  2. BSection 173 and Section 174 do not apply to itCorrect
  3. CIt must hold four meetings a year with a gap of up to 120 days
  4. DIt must hold only the first meeting within 30 days and four later meetings

Explanation

The proviso to Section 173(5) states nothing in that sub-section and Section 174 applies to an OPC having only one director on its Board. So the meeting and quorum requirements are not applicable. The 120-day option states the general rule for ordinary companies.

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