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

Under the Companies Act, 2013, what is the maximum permitted gap between two consecutive Board meetings of a company to which the general rule applies?

The maximum gap is one hundred and twenty days. Section 173(1) requires a minimum of four Board meetings each year, and no more than 120 days may intervene between two consecutive meetings. The ninety-day figure applies only to the special small company, OPC and dormant company rule.

  1. ANinety days
  2. BOne hundred and twenty daysCorrect
  3. COne hundred and eighty days
  4. DSixty days

Explanation

Section 173(1) requires at least four Board meetings every year, with not more than one hundred and twenty days intervening between two consecutive meetings. Ninety days is the minimum gap relevant to small companies, OPCs and dormant companies under section 173(5), not the maximum for ordinary companies.

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