A board meeting is the meeting of the directors in the company. The directors are responsible for taking care of the affairs and to act on behalf of the company.
The people in the board of directors have the power and responsibility to work on the main decisions of the company. And to work on the decision making, the board of directors need to meet for frequent meetings, called the board meetings. In the US, as per the section 173 of the Companies Act of 2013, Public and Private limited companies should have their first board meeting within 30 days of when the company is incorporated.
Additionally, companies have to conduct at least 4 board meetings in a year with no more than 120 days gap between two meetings. For small companies, dormant companies, and sole proprietorships, at least one meeting has to be conducted within half a year, where the gap between the meetings should not be less than 90 days.
There are some requirements for a board meeting to be conducted, and they are:
- Adequate Quorum– The minimum number of voting members present
- Right convening authority– The proper authority (company secretary or an authorized person) should be there to conduct the meeting.
- Proper Presiding Officer– The meeting should be headed by the chairman
- Proper Notice– A proper notice has to be served to the members prior to the board meeting.
- Proper Agenda– It is vital to put a proper agenda for the board meeting. No other business is allowed to join unless mentioned in the notice.
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