Section 173 of the Companies Act, 2013 mandates the holding of the First Board Meeting of the company.
Purpose: The purpose of the First Board Meeting is to initiate the functioning of the company and take key decisions necessary for its smooth operation.
Timeline: The First Board Meeting should be held within 30 days from the date of incorporation of the company.
Meeting: The First Board Meeting is conducted by the Directors of the company.
Exemption: There is no exemption provided for holding the First Board Meeting. However, in case of a One Person Company, the sole Director can pass the necessary resolutions by circulation instead of conducting a physical meeting.
Penalty: Non-compliance with the requirement of holding the First Board Meeting can attract a penalty of up to Rs. 1 lakh on the company and every officer in default.
Reporting Authority: The minutes of the First Board Meeting should be recorded and maintained by the company secretary, if appointed. The same should be filed with the Registrar of Companies within 30 days of the meeting in the prescribed form.
