Section 173 — Meetings of Board

(1) Every company shall hold the first meeting of the Board of Directors
within thirty days of the date of its incorporation and thereafter hold a minimum number of four meetings
of its Board of Directors every year in such a manner that not more than one hundred and twenty days shall
intervene between two consecutive meetings of the Board:
Provided that the Central Government may, by notification, direct that the provisions of this sub-
section shall not apply in relation to any class or description of companies or shall apply subject to such
exceptions, modifications or conditions as may be specified in the notification.
(2) The participation of directors in a meeting of the Board may be either in person or through video
conferencing or other audio visual means, as may be prescribed, which are capable of recording and
recognising the participation of the directors and of recording and storing the proceedings of such meetings
along with date and time:
Provided that the Central Government may, by notification, specify such matters which shall not be
dealt with in a meeting through video conferencing or other audio visual means.
1[Provided further that where there is quorum in a meeting through physical presence of directors, any
other director may participate through video conferencing or other audio visual means in such meeting on
any matter specified under the first proviso.]
(3) A meeting of the Board shall be called by giving not less than seven days’ notice in writing to every
director at his address registered with the company and such notice shall be sent by hand delivery or by
post or by electronic means:
Provided that a meeting of the Board may be called at shorter notice to transact urgent business subject
to the condition that at least one independent director, if any, shall be present at the meeting:
Provided further that in case of absence of independent directors from such a meeting of the Board,
decisions taken at such a meeting shall be circulated to all the directors and shall be final only on ratification
thereof by at least one independent director, if any.
(4) Every officer of the company whose duty is to give notice under this section and who fails to do so
shall be liable to a penalty of twenty-five thousand rupees.
(5) A One Person Company, small company and dormant company shall be deemed to have complied
with the provisions of this section if at least one meeting of the Board of Directors has been conducted in
each half of a calendar year and the gap between the two meetings is not less than ninety days: