A meeting of the Board of directors was scheduled to take place at the factory premises of a company and not at the registered office. At the scheduled date and time, the required quorum was not present. The Chairman of
CS Executive · Company Law · PYQS · December 2016
A meeting of the Board of directors was scheduled to take place at the factory premises of a company and not at the registered office. At the scheduled date and time, the required quorum was not present. The Chairman of the meeting announced that the meeting is dissolved.
Answer & Explanation:
The meeting of the Board of directors may be held either at the registered office or otherwise. The quorum for board meeting as contained under section 174 of the Companies Act, 2013 provides that where a meeting of the board could not be held for want of quorum, then unless the articles provide otherwise, the meeting shall automatically stand adjourned to the same day at the same time and place in the next week or if that day is a national holiday, till the next succeeding day, which is not a national holiday, at the same time and place. According to above provision, the announcement of Chairman that the meeting stands dissolved is not tenable. The meeting shall be held at same place i.e. factory premises and at same time in the next week provided it is not a national holiday.
Topics: Board Meetings
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