Query : First Board Meeting for a small company

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Vishal Agarwal

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Jul 3, 2014, 1:42:58 AM7/3/14
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Respected Professionals,

Pursuant to Sec 173(5) of Companies Act, 2013 , can a private limited company having paid up capital upto Rs. 50 Lakhs ( thereby being a small company) hold its first Board Meeting on 29 August 2014 and file MGT 14 ,disclosing Directors interest, within 30 days therefrom without attracting liability to pay additional fees or contravening the law ?

This is further to fact that the company had held a Board Meeting in between 01st Jan 2014 to 31st March 2014 and thereby sufficiently complied with 173(5) requiring a Board Meeting to be held in first half of the calendar year.

Your opinions in the matter would be highly appreciated.

Thanks & Regards,

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VISHAL AGARWAL

Kirti Tulsyan

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Jul 4, 2014, 1:50:06 AM7/4/14
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VISHAL AGARWAL

REPLY 1
Dear Vishal ji,

As per section 173(5), the gap between two Board Meetings should not be more than 90 days. This practically makes aa mokery of the same sub-section, permitting one meeting in each half of the calender year.

Regards,
Manoj Sethia, FCA,ACS,ACMA
M.Sethia & Co.
Chartered Accountants
3,Bentinck Street (2nd Floor)
Kolkata - 700 001
Ph : +91 33 65366663, 22100875
"It is not in the stars to hold our destiny but in ourselves"

REPLY 2

Sir,

The gap should not be less than 90 days. I don't think there any drafting error in this aspect .

Regards,

Vishal Agarwal



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Best Regards, 
Kirti Tulsyan
B.Com.,ACA,CS


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Kirti Tulsyan

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Jul 5, 2014, 2:07:48 AM7/5/14
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Respected Professionals,

Pursuant to Sec 173(5) of Companies Act, 2013 , can a private limited company having paid up capital upto Rs. 50 Lakhs ( thereby being a small company) hold its first Board Meeting on 29 August 2014 and file MGT 14 ,disclosing Directors interest, within 30 days therefrom without attracting liability to pay additional fees or contravening the law ?

This is further to fact that the company had held a Board Meeting in between 01st Jan 2014 to 31st March 2014 and thereby sufficiently complied with 173(5) requiring a Board Meeting to be held in first half of the calendar year.

Your opinions in the matter would be highly appreciated.

Thanks & Regards,

--
VISHAL AGARWAL
Dear Vishal ji,

As per section 173(5), the gap between two Board Meetings should not be more than 90 days. This practically makes aa mokery of the same sub-section, permitting one meeting in each half of the calender year.
Regards,
Manoj Sethia, FCA,ACS,ACMA
M.Sethia & Co.
Chartered Accountants
3,Bentinck Street (2nd Floor)
Kolkata - 700 001
Ph : +91 33 65366663, 22100875
"It is not in the stars to hold our destiny but in ourselves"
REPLY 2
Only MCA can tell us when the law itself allows a one man company ,small company to hold one board meeting in each half year ,how can it be ensured that the gap between two meetings does not exceed 90 days.
Regards
kalidas

REPLY 3

Please correct me if I am wrong but I understand that the provision requires that the gap should exceed or equal 90 days.

So, sufficient compliance can be done in such case where Board Meetings are held in (say) April and September in case of small company.

Regards,
Vishal Agarwal



Kirti Tulsyan

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Jul 5, 2014, 2:11:24 AM7/5/14
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Extracts of section 173
(5) A One Person Company, small company and dormant company shall be deemed to
have complied with the provisions of this section if at least one meeting of the Board of
Directors has been conducted in each half of a calendar year and the gap between the two
meetings is not less than ninety days:

Therefore if meeting is proposed to be held on 29.08.2014 then Form MBP -14 can be filed within 27.09.2014

amit saraf 


On Thu, Jul 3, 2014 at 3:01 PM, Manoj Sethia <mset...@gmail.com> wrote:
Dear Vishal ji,

As per section 173(5), the gap between two Board Meetings should not be more than 90 days. This practically makes aa mokery of the same sub-section, permitting one meeting in each half of the calender year.

Regards,
Manoj Sethia, FCA,ACS,ACMA
M.Sethia & Co.
Chartered Accountants
3,Bentinck Street (2nd Floor)
Kolkata - 700 001
Ph : +91 33 65366663, 22100875
"It is not in the stars to hold our destiny but in ourselves"
On Wed, Jul 2, 2014 at 2:27 PM, Vishal Agarwal <vishalag...@gmail.com> wrote:
Respected Professionals,

Pursuant to Sec 173(5) of Companies Act, 2013 , can a private limited company having paid up capital upto Rs. 50 Lakhs ( thereby being a small company) hold its first Board Meeting on 29 August 2014 and file MGT 14 ,disclosing Directors interest, within 30 days therefrom without attracting liability to pay additional fees or contravening the law ?

This is further to fact that the company had held a Board Meeting in between 01st Jan 2014 to 31st March 2014 and thereby sufficiently complied with 173(5) requiring a Board Meeting to be held in first half of the calendar year.

Your opinions in the matter would be highly appreciated.

Thanks & Regards,

--
VISHAL AGARWAL

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