Meetings of Directors: The directors regulate corporate affairs of public limited company. They are responsible for formulating plans, policies and strategies. For this purpose, they arrange the following types of meetings:
Board Meeting: Board meeting means the meeting of the directors. Directors are elected by the shareholders from among themselves for managing the business of the company. Section 90 (1) of the Companies Act 1994 states that (Indian law for Example) every public company and a private company which is a subsidiary of a public company shall have at least three directors. The directors must meet from time to time to discuss and decide matters relating to policy and for reviewing its affairs and progress. In this way, they exercise their control over the company and discharge their responsibilities to the shareholders. The usual businesses transacted at a board meeting are as follows:
- Determining overall business and management policy;
- Issuance, allotment, call and forfeiture of shares;
- Approving transfer and transmission of shares;
- Issuance of debenture, and allotment thereof;
- Exercise borrowing power;
- Investment of company funds;
- Appropriation of profit with recommendation of final and declaration of interim dividend;
- Adopting annual report;
- Convening general meeting;
- Fixation of the period of book closure;
- Filing various returns and statements;
- Review progress and affairs of the company,
- Conduct any specific inquiry and;
- Appointment, promotion and dismissal of staff.
Committee Mating: Committee is the smaller body of the Board and may consist of one or more members. The directors may delegate their powers to different committees. The committee may be standing or permanent in nature. The likely committees are transfer or promotion committee, budget committee, inquiry committee etc. These committees may meet together and transact their business only according to the organizational requirement.
