The
directors of a joint stock company are jointly known as the board of
directors or the board. The administrative functions and policy planning
of a company are unseated in the board. The board of directors or often
known as the numbers of the board sit at meetings to supervise the
progress of routine business or for policy planning or review of the
progress of plans already accepted for implementation. Such meetings are
called board meetings.
The rules of board meeting are usually mentioned in the Memorandum of Association (M/ A) and the Articles of Association (A/ A) of the company. As per provisions of the Companies Act, a board meeting should be held at least once in every three months or at least four times in a year. At least one-third members of the board of directors or two members (Whichever is higher) constitute quorum in a board meeting. In the absence of the chairman of the board, the senior-most director or any one (with the consent of all from the present directors) may preside over the board meeting.
A board meeting is usually held for considering the application for shares, allotment of shares and their forfeiture, issue of debenture, approval of contract, fixing the date of annual general meeting, determining business policy and plans, appointment of managing director, filling in vacancy in the board by appointing a new director temporarily.
