Class 11 Secretarial Practice Chapter 10: Correspondence with Directors

Key concepts: Correspondence with Directors

Board meeting rules

First Board meeting within 30 days of incorporation; at least four meetings every year; gap between two consecutive meetings not more than 120 days.

Notice of Board meeting

At least 7 days' notice with agenda, in writing, to every director at the registered address (by hand, post or electronic means).

Disclosure of interest (Section 184)

Every director must disclose his or her interest in other companies or contracts.

Minutes (Section 118)

Minutes of general and board meetings must be prepared within 15 days of the conclusion of the meeting.

Style

Correspondence with directors should be brief and to the point, giving maximum information in minimum words.

Quick revision: important points

• Notice of Board meeting includes date, time, venue and agenda.
• Directors' interest disclosure is required as per Section 184.
• Avoid lengthy, irrelevant details in letters to directors.

Practice MCQs with answers

1. The first Board meeting must be held within ___ days of incorporation:

   1. 7
   2. 30
   3. 90
   4. 120
   Show answer

   Answer: B. 30
   Within 30 days from incorporation.

2. Minimum number of Board meetings every year:

   1. 1
   2. 2
   3. 4
   4. 12
   Show answer

   Answer: C. 4
   At least four.

3. Maximum gap between two consecutive Board meetings:

   1. 30 days
   2. 60 days
   3. 120 days
   4. 365 days
   Show answer

   Answer: C. 120 days
   Not more than 120 days.

4. Minimum notice for a Board meeting is:

   1. 7 days
   2. 1 day
   3. 21 days
   4. 45 days
   Show answer

   Answer: A. 7 days
   At least 7 days in writing.

5. Section 184 relates to:

   1. Disclosure of interest by directors
   2. AGM notice
   3. Dividends
   4. Auditing
   Show answer

   Answer: A. Disclosure of interest by directors
   Directors must disclose their interest.

All Class 11 Secretarial Practice chapters

• Chapter 1: Secretary
• Chapter 2: Joint Stock Company
• Chapter 3: Formation of a Company
• Chapter 4: Documents Related to Formation of a Company
• Chapter 5: Members of a Company
• Chapter 6: Directors and Key Managerial Personnel
• Chapter 7: Company Meetings - I
• Chapter 8: Company Meetings - II (AGM and EGM)
• Chapter 9: Business Communication Skills of Secretary
• Chapter 10: Correspondence with Directors

Class 11 Secretarial Practice notes: all chapters