What are Board Meetings
It is a meeting of the board directors of a company. It is usually regarding decisions pertaining to the company in order to take it in the right direction. In most cases the board usually consists of at least the president, vice president, secretary and the treasure. During such board meeting the secretary records the all the discussions and actions taken by them, this document is called the” Minutes”. This document is then typed and filed for future reference. This document if requested by the stake holders, the company will have to share with them as well.
Usually the first topic for discussion in the board meeting would be the minutes of the previous meeting. Anything that has been unresolved in the previous meeting will be resolved in the current meeting that takes place or postponed to the next immediate meeting that may take place. Board meeting can also be called for discussion of financial reports so that the company knows the financial position at given point of time.
The meetings in a company can be grouped as general meetings, meetings of directors or meetings of person related to the meeting alone.as per the companies act of 1956 the general meeting may take the form of:
- Statutory meting
- Annual general meeting
- Extraordinary general body meeting
- Class meeting
Every board meeting will finally pass a resolution on the following details as per act:
- The power to issue debentures
- The power to call share holders in respect of the unpaid shares
- The power to make loans
- Investment of funds of the companies to future projects.
The meeting of the board is convened by the chairman only in case the meeting is deemed necessary. In the chairman will present agendas and reasons for the meeting. The chairman will have to give notice to all the directors of the date, time and venue at least 24 hours prior. The board has certain aims and objectives for conduct of such meeting which are discussed below:
The following are the main objectives:
- Be committed towards the interest of the public
- Encourage inputs from all stake holders
- Bring objectivity to the attention of issues.
- Be dedicated to timeliness in response to stake holder’s needs.
The board also has certain responsibilities on its part which are as follows:
- Regulate the work program and approve the appointment of members.
- Perform any other function subsidiary to advancing financial reporting to the public sector.
- Prepare and publish directives, interpretations and guide lines concerning the standards of generally Recognized Accounting Practice (GRAP)