Small Co 2 Board Meeting May be Lead to Contravention

[CS Manish Buchasia (Practising Company Secretaries , Ahmedabad)]

FACT : small Pvt Limited company , As per Sec 173 2 BM Required But Gap Must be Exceeding 90 Days Between 2 I am planning for the

First Baord Meeting in 01-09-2014 For Disclosure, Ac Approval and Director Report approval. 

Second on 31-03-2015 For Note of A/c.

Query

Now, If for any reason Company needs to call Second Board Meeting on 01-10-2014 and the gap between 2 Board Meetings 01/09/2014 and 01/10/2014 is less than 90 days, co have to comply the law of Big Company Which Require 4 Meeting and Gap Should not be More then 120 Days.

What is the Solution? Plan for the 4 Meeting accordingly, As Putting Condition of 90 Days seems Inappropriate  

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Best  Regards:

Manish Buchasia / M. S. Buchasia & Associates

(Practising Company Secretaries)
410, "SATYAM MALL" Nr Kameshwar School, Opp Samman,
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[VANDANA PERIWAL]

There is nothing which prevents a small company to conduct BM any time it wants.

 

The provision of which you are talking about is just a matter of compliance that a small company will be said to comply with the requirement of BMs if it conducts one meeting in each half year with not less than 90 days gap between two. It is just for the reason, that it is possible that a small company for compliance may conduct board meeting on 30th june and 1st july.  BMs held at minimal cost and compliance is also okay of one BM in each half year. Just to prevent this practice, its been said that it will be okay if a small company conducts only two meetings time gap between two shall not be less than 90 days.

 

But it doesnt mean at all that small company cannot conduct BMs with less than 90 days gap. For compliance you shud hold one more BM in which there shall be the requisite gap between two meetings in two half years.