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Q1. An OPC with 1 Director shall be required to hold a First Board Meeting u/s 173(1):
Q2. The following is an extract of balance sheet of a Company on 31stJan , 2016: Equity Shareholding (FV Rs 10/-) : Rs. 10 lakhs, Liabilities: Rs. 2 lakhs, Profits: 3 lakhs Assets: Rs. 15 lakhs, Bank A/c Rs. 1 lakh, Debtors 5 lakhs, Other Assets (incl. Fixed Assets) 9 lakhs The Company incorporated on 1st Jan 2016. As the Balance Sheet shows the company got off to some good business, and in order to avoid any noncompliance penalty of Companies Act, 2013, Mr. Heavy, who is one of the 3 Directors holding 100000 shares and deeply involved in the business felt the need to seek a professional advice on the BM provisions under Companies Act, 2013. Mr. Not Heavy, a fellow Director on the Board of the Company suggested your name for the same: What would be your advise to them on 31st Jan 2016 regarding BM provision.
Min 4 BM to be held in a Calendar year at interval not exceeding 120 days between consecutive BM.
Min 4 BM to be held in a Financial Year at interval not exceeding 120 days between consecutive BM.
Min 4 BM in a Financial Year at interval not exceeding 90 days between consecutive BM and atleast 1 BM per Quarter
Min 2 BM at interval not less than 90 days and atleast 1 BM in every half of the calendar year
Q3. A OPC with 2 or more Directors shall be required to hold a First Board Meeting u/s 173(1):
Q4. ‘A. Ltd incorporated in 2011, held Board meetings between 1st January 2016 to 31st December 2017 on the following dates: 28th February 2016, 20th June 2016, 10th October 2016, 1st February, 2017, 31st March, 2017, 25th July, 2017, 20th November, 2017. Director Wiseman says that there has been no violation of Sec 173. Director Dumbman says that there is a violation of sec 173. Director Lostman says that if TWO Board Meetings are not held within 31st March 2018; violation will occur. Who is correct?
Wiseman
Dumbman
Lostman
None
Q5. BM was called for an urgent matter required to be deliberated, what are the requirements for such a BM:
An Independent Director (if any) shall be the Chairman of such a meeting
An Independent Director (if any) shall be present at such meeting OR atleast ratify the decisions made thereat through circulation
If the Company has Independent Directors, only they can vote on such urgent matters
Notice calling such a BM shall be signed by Independent Directors only
Q6. A small company shall be required to hold a First Board Meeting u/s 173(1):
Q7. For a BM dealing with non-urgent matters notice of the BM shall be given atleast before:
7 days
14 days
21 days
28 days
Q8. The water pipeline of a reputed hotel company ruptured due to accidental damage. Immediate bids were obtained from repair contractors; a heavy financial outlay was expected. The BM needs to be called urgently to select a contractor or else the business suffers loss of reputation and payment of compensation to clients. Can an urgent BM be held with a shorter Notice being given?
Yes
No
Notice for a shorter period can be given and Independent Director (if any) shall be present at BM OR ratify the decisions taken thereat by circulation.
Yes, BM can be held without notice also but Independent Director (if any) shall be present at BM OR ratify the decisions taken thereat by circulation.
Q9. Mr. A, a Director of ABC Ltd recently had a housewarming ceremony at which all BOD members, Secretary & Employees of the ABC Ltd were invited and in attendance. For the next BOD meeting the Company sent a notice at the address of his newly opened house and not at registered address in company’s records (which was his old house). This was done in foresight that the notice would not make it to him had it been sent at the registered address. Is the treatment proper and in line with Companies Act?
Q10. Failure to give BM Notice shall result in following Penalty to the defaulting Officer of the Company:
Rs. 25000/-
Rs. 25000/- + Rs. 100/- for every day default continues
Rs. 10000/-
Rs. 10000/- + Rs 100/- every day the default continues
Q11. A OPC with 2 or more Directors shall be required to hold which of the following minimum number of Board Meeting u/s 173(1):
Q12. The following Directors have the respective views on the delivery of Notice of BM: Mr A. The Notice should be delivered either by hand OR by post OR by electronic means Mr B The Notice should be delivered by hand AND by post AND by electronic means Mr C The Notice should be delivered by the preferred mode of delivery of the recipient Director Which of the aforementioned Directors have the right opinion:
Mr A
Mr B
Mr C
None
Q13. Federation of Indian Chambers of Commerce and Industry (FICCI)’s, (Sec 8 Co’s) President Elect Mr. Somanytaking over from President Mr. Shah seeks your advise as to the BM provisions applicable to his organisation. Kindly suggest the procedure to be followed.
Min 4 BM to be held in a Calendar year at interval not exceeding 120 days between consecutive BM.
Min4BMtobeheld in a Financial Year at interval not exceeding 120 days between consecutive BM.
Min 4 BM in a Financial Year at interval not exceeding 90 days between consecutive BM and atleast 1 BM per Quarter
1 BM in every calendar year
Q14. A Dormant company shall be required to hold a First Board Meeting u/s 173(1):
Q15. The water pipeline of a reputed hotel company ruptured due to accidental damage. Immediate bids were obtained from repair contractors; a heavy financial outlay was expected. The BM needs to be called urgently to select a contractor or else the business suffers loss of reputation and payment of compensation to clients. Can an urgent BM be held without any Notice being given?
Yes
No
Yes, but ratify the same at the BM
Yes, but Independent Directors need to be present
Q16. ‘A. Ltd incorporated in 2011, held Board meetings between 1st January 2016 to 31st December 2016 on the following dates: 2nd January 2016, 28th April 2016, 1st August 2016, 1st October, 2016, 1st December 2016 Many of the Directors refrained from attending the Meeting on 1st December claiming that it was illegal as the Sec 173 required only 4 meetings mandatorily in a year. Is the BM held on 1st December 2016 Invalid?
Q17. ‘A. Ltd incorporated in 2011, held Board meetings between 1st January 2016 to 31st December 2017 on the following dates: 28th February 2016, 20th June 2016, 10th October 2016, 1st February, 2017, 31st March, 2017, 25th July, 2017, 20th November, 2017. Is there a violation of Sec 173 and if so for which year.
Violation in 2016
Violation in 2017
NoViolation
Both 2016 & 2017
Q18. What provisions pertaining to BM are applicable to Specified IFSC public Company:
Such company shall hold First BM within 30 days of Incorporation and 1 BM in each half of calendar year
Such company shall hold First BM within 60 days of Incorporation and 1 BM in each half of calendar year
Such company shall hold First BM within 30 days of Incorporation and 1 BM in each quarter of calendar year
Such company shall hold First BM within 60 days of Incorporation and 1 BM in each quarter of calendar year
Q19. An OPC with 2 or more Directors shall be required to give 7 days’ notice for BM:
TRUE
FALSE
Notice provisions are deemed complied with if 1 BM every half calendar year is held and gap between 2 consecutive BM is not less than 90 days
OPC is not required to conduct BM as it is only led by One Person.
Q20. When Directors participate through Audio Visual means what are its pre requisites:
