4 May 2021
Clarification issued by Ministry of Corporate Affairs (MCA) on 3 May 2021 for board meetings

Existing provision of the Companies Act, 2013
Section 173 of the Companies Act, 2013 (Act) prescribes that the gap between two consecutive board meetings should not exceed 120 days.

The proposed change by MCA
Given the difficulties arising from the resurgence of COVID-19 and requests received from stakeholders, the MCA has decided that the gap between two consecutive board meetings prescribed by Section 173 of the Act (120 days) shall be extended by a period of 60 days. Accordingly, the gap between two consecutive board meetings shall not exceed 180 days instead of 120 days.

Applicability of change proposed by MCA
This relaxation, enabling the gap between two consecutive board meetings to extend to 180 days shall be applicable for the quarters:
  • April 2021 to June 2021
  • July 2021 to September 2021
Our Comments
We see this as a welcome change in current times where COVID-19 cases are on the rise. This relaxation shall grant a cushion enabling the Board to conduct meetings at relaxed intervals, thus countering any immediate threat to physical well-being owing to the pandemic and ensuring that the management and administration of the company stay unperturbed.
Sudit K. Parekh & Co. LLP
Urmi Axis | 6th Floor | Famous Studio Lane |
Mahalaxmi | Mumbai | 400 011 | India
+91 22 6617 8100 | skpco.info@skparekh.com
Mumbai | Pune | Hyderabad | Gurugram | Chennai | Bengaluru
This alert contains general information which is provided on an “as is” basis without warranties of any kind, express or implied and is not intended to address any particular situation. The information contained herein may not be comprehensive and should not be construed as specific advice or opinion. This alert should not be substituted for any professional advice or service, and it should not be acted or relied upon or used as a basis for any decision or action that may affect you or your business. It is also expressly clarified that this alert is not intended to be a form of solicitation or invitation or advertisement to create any adviser-client relationship.

Whilst every effort has been made to ensure the accuracy of the information contained in this alert, the same cannot be guaranteed. We accept no liability or responsibility to any person for any loss or damage incurred by relying on the information contained in this alert.

© 2021 Sudit K. Parekh & Co. LLP | All Rights Reserved.

  Unsubscribe    |    View in browser