To consider policy issues and other major problems of a one person company, board meetings are held by bringing together the directors. Companies act allow you to hold it in many forms.
Directors can meet to take decision in all most all cases of the OPC. They can also delegate certain type of functions to a particular person or group of people.
Depending on the size of the business, board of directors may meet less frequently than a large organization.
In certain type of cases, companies act 2013 require you to compulsorily conduct board meetings to take decisions.
Minimum number of board meetings to be held by a OPC
As per companies act, 2013, a one person company is required to have at least one meeting of the board of directors in each half of a calendar year. The OPC should conduct it in such a way that the gap between these two should not be less than 90 days.
Calendar year starts from January to December.
However, board meetings is not required to be conducted if the one person company has only one director.
This means, a OPC is required to conduct minimum of 2 board meetings in a year with a gap of not less than 90 days if it has 2 or more directors. The first one should be between January to June and the other one should be between July to December.
To comply with this minimum requirements, if you are planning to conduct one in the month of June and the other one in the month of July, then it’s not allowed as minimum gap between these two is less than 90 days.
When 90 days gap is applicable
As per the provisions of section 173 (5), the requirement of maintaining minimum gap of 90 days is mandated only, in case of OPC, holds one board meeting in each half of a calendar year.
The holding of two board meetings in each half of a calendar year with minimum gap of 90 days is a minimum requirement for a OPC. There is no bar in holding more than two in a year.
Directors of a one person company can meet any number of times, if it’s required for smooth running of the business.
Please note, for a minimum of 2 board meetings, you should maintain the gap of 90 days or more, or else it’s not required.