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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board Committees

The Board of a Producer Company formed a Procurement Committee under section 378U. The committee met on 5 March and the Board met on 20 March and 10 April. The committee Chairman says the minutes of the 5 March meeting may be placed before the Board at any later convenient meeting. What is the correct position?

The minutes must be placed before the Board at its next meeting, which is 20 March. Section 378U(5) requires the minutes of each committee meeting to go to the Board's next meeting, so deferring them to a later meeting or the general meeting is not allowed.

  1. AThe minutes must be placed before the Board at its next meeting, being the one on 20 MarchCorrect
  2. BThe minutes need be placed only if the committee took a decision on fees
  3. CThe minutes may be placed at the annual general meeting instead of the Board
  4. DThe minutes may be placed at the 10 April meeting, being the second meeting after

Explanation

Section 378U(5) requires minutes of each committee meeting to be placed before the Board at its next meeting. The next Board meeting after 5 March is 20 March, so deferring to 10 April is wrong.

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