A director insists that his note of dissent be recorded in the minutes of the Board meeting which he attended and did not agree to some of the points of the agenda.
CS Executive · Company Law · PYQS · December 2016
A director insists that his note of dissent be recorded in the minutes of the Board meeting which he attended and did not agree to some of the points of the agenda.
Answer & Explanation:
As per Section 118(4) of Companies Act, 2013 in case of a meeting of the Board of Directors or of a committee of the Board, the minutes shall also contain- the names of the directors present at the meeting; and in the case of each resolution passed at the meeting, the names of the directors if any, dissenting from, or not concurring with the resolution. The Secretarial Standards on Meetings of Board of Directors (SS-1) also insist on inclusion of the same in the minutes. It provides that the fact of the dissent and the name of the Director who dissented from the Resolution should be recorded. Hence the Director who attended the Board meeting and did not agree on certain points can insist that his dissent be recorded in the minutes.
Topics: Board Meetings
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