MCA allows GAP up to 180 days between two board meetings

Gap between two consecutive meetings of the Board may extend to 180 days during the Quarter – April to June 2021 and Quarter – July to September, 2021, Instead of 120 days as required in the Companies Act 2013. General Circular No. 08/2021 Dated 03-05-2021.

The Ministry of Corporate Affairs vide its circular dated 03rd May 2021 has relaxed the requirement of Section 173(1) of the Companies Act, 2013, in view of the difficulties arising due to resurgence of COVID-19 pandemic.

It has been clarified by the Ministry that the requirement of holding Board Meetings of the companies within the interval of 120 days as provided in section 173(1) of the Act shall stand extended by 60 days for first two quarters of the Financial Year 2021-22.

Accordingly, the gap between two consecutive meetings of the Board may extend to 180 days during the quarter-April to June 2021 and quarter July to September 2021, instead of 120 days as required in the Companies Act, 2013.

For Instance, if a Company’s first Board Meeting has been held on 01st April, 2021 and second Board Meeting on 27th September 2021, then the same would not be viewed as violation of the provisions of the Act, as the same has been conducted within 180 days.

Source- ICAI

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General Circular No. 08/2021

F No 2/6/2020-CL-V
Government of India
Ministry of Corporate Affairs

5th Floor. ‘A’ Wing. Shastri Bhawan
Dr. R. P. Road New Delhi

Dated 03-05-2021

To

The DGCoA
All Regional Directors.
All Registrar of Companies
All Stakeholders

Subject: Gap between two board meetings under section 173 of the Companies Act. 2013 (CA-13) – Clarification – reg.

Sir/Madam

In view of the difficulties arising due to resurgence of Covid-19 and requests received from stakeholders. It has been decided that the requirement of holding meetings of the Board of the companies within the intervals provided in section 173 of the Companies Act. 2013 (120 days) stands extended by a period of 60 days for fast two quarters of Financial Year 2021.22. Accordingly, the gap between two consecutive meetings of the Board may extend to 180 days during the Quarter – April to June 2021 and Quarter – July to September, 2021, Instead of 120 days as required in the Companies Act 2013

2. This issues with the approval of the competent authority

Yours faithfully,

(KMS Narayanan)
Assistant Director (policy)

Copy forwarded for information to –

1. e-governance section and web contents officer to place the circular on MCA website and

2. Guard file

Relevant Circulars