{"id":47715,"date":"2023-11-17T15:52:33","date_gmt":"2023-11-17T10:22:33","guid":{"rendered":"https:\/\/www.cagmc.com\/?p=47715"},"modified":"2024-05-29T16:22:21","modified_gmt":"2024-05-29T10:52:21","slug":"secretarial-standards-1-and-2","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/secretarial-standards-1-and-2\/","title":{"rendered":"A Comprehensive Analysis of Secretarial Standards 1 and 2"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-47721 size-full\" title=\"A Comprehensive Analysis of Secretarial Standards 1 and 2\" src=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/11\/A-Comprehensive-Analysis-of-Secretarial-Standards-1-and-2-1-1.png\" alt=\"A Comprehensive Analysis of Secretarial Standards 1 and 2\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/11\/A-Comprehensive-Analysis-of-Secretarial-Standards-1-and-2-1-1.png 1200w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/11\/A-Comprehensive-Analysis-of-Secretarial-Standards-1-and-2-1-1-300x158.png 300w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/11\/A-Comprehensive-Analysis-of-Secretarial-Standards-1-and-2-1-1-1024x538.png 1024w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/11\/A-Comprehensive-Analysis-of-Secretarial-Standards-1-and-2-1-1-615x323.png 615w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/11\/A-Comprehensive-Analysis-of-Secretarial-Standards-1-and-2-1-1-400x210.png 400w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/11\/A-Comprehensive-Analysis-of-Secretarial-Standards-1-and-2-1-1-292x153.png 292w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p style=\"text-align: justify;\"><b>Secretarial Standards 1 and 2<\/b><span style=\"font-weight: 400;\">, as defined under the <\/span><span style=\"font-weight: 400;\">Companies Act, 2013<\/span><span style=\"font-weight: 400;\"> are vital tools for companies to follow when managing their internal affairs and communication with stakeholders. They act like guidebooks, making sure companies do things the right way. This article talks about how to give notice for meetings and when you can use shorter notice. It compares the rules for independent directors in both the Secretarial Standards 1 and 2<\/span><b>.<\/b><\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\">\n<p style=\"text-align: justify;\"><b>Table of Content<\/b><i><\/i><\/p>\n<ul style=\"text-align: justify;\">\n<li><a href=\"#the\"><span style=\"font-weight: 400;\">Overview of Secretarial Standard 1 -Meeting of the Board of Director<\/span><\/a><\/li>\n<li><a href=\"#for\"><span style=\"font-weight: 400;\">What is the required number of attendees for the meeting under Secretarial Standard 1?<\/span><\/a><\/li>\n<li><a href=\"#of\"><span style=\"font-weight: 400;\">Overview of Secretarial Standard 2 \u2013 General Meeting<\/span><i><\/i><\/a><\/li>\n<li><a href=\"#conclusion\">Conclusion<\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"the\"><b>Overview of Secretarial Standard 1 -Meeting of the Board of Director<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This rule applies to meetings of the board of directors for all companies formed under the Companies Act of 2013<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Secretarial Standard-1<\/b><span style=\"font-weight: 400;\"> (SS-1) does not apply to <\/span><a href=\"https:\/\/www.cagmc.com\/one-person-company\/\"><span style=\"font-weight: 400;\">One Person Companies<\/span><\/a><span style=\"font-weight: 400;\"> (OPCs), Companies licensed under Section 8 of the Companies Act, 2013, or those governed by previous laws.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Normally, when planning a meeting, you must provide notice to the attendees at least 7 days in advance. If you send the notice by speed post or registered post, you should add 2 more days.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, if there&#8217;s urgent business, you can give shorter notice. If an Independent Director can&#8217;t attend the meeting, the decisions made in the meeting become final if at least one Independent Director later approves them.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If your company doesn&#8217;t have <\/span><a href=\"https:\/\/www.cagmc.com\/independent-director\/\"><span style=\"font-weight: 400;\">Independent Directors<\/span><\/a><span style=\"font-weight: 400;\">, the decisions become final when most directors agree to them.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/www.cagmc.com\/board-meetings-restrictions-on-powers-of-board-of-directors\/\"><span style=\"font-weight: 400;\">board meeting<\/span><\/a><span style=\"font-weight: 400;\"> notice should contain the Date, day, time, and location of the meeting, the Meeting&#8217;s serial number for reference, contact information, including the email address of the Chairman and Company Secretary (CS) and Information about the options for directors to participate in the meeting through electronic means.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The notice sending proof should be retained for at least 3 years from the meeting date.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If the rescheduled meeting date was not set during the original meeting, notice must be distributed at least one week (7 days) before the new meeting date.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">After formal incorporation within 30 days first board meeting needs to be held.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There must be 4 board meetings held in each calendar year and the gap between the two should never be more than 120 days<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For One Person Company (OPC), Small Company, and Dormant Company situations:\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There shall be two board meetings held during each half of the year, with a minimum gap of 90 days between each meeting.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">At least once in a Calendar Year Need: To review the performance of Non-Independent Directors and the Board as a whole<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The records of attendance will be kept for a minimum of 8 fiscal years starting from the date of the most recent entry made in them.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If at least one-third of the current directors demand the resolution, it must be implemented.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Draft minutes shall be circulated within 15 days after the conclusion of meetings.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The minutes must be recorded in the minute book within 30 days starting from the meeting&#8217;s conclusion.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">All meeting minutes will be permanently stored in both physical and digital formats, including a timestamp.<\/span><\/li>\n<\/ul>\n<h2 id=\"for\"><b>What is the required number of attendees for the meeting under<\/b> <b>Secretarial Standard 1?<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">One-third of the entire strength of the director should be there.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Two directors multiplied by any fraction within the shall be rounded up to the next one.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Enough attendees must be there in a meeting.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Any director who has a personal stake in the topic under discussion should be exempt from being counted as present and should be disqualified from participating.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, in the case of a Private Company, a director can participate once they have disclosed their interest.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Directors who participate through electronic means will be included in the attendance<\/span><\/li>\n<\/ul>\n<h2 id=\"of\"><b>Overview of Secretarial Standard 2 \u2013 General Meeting<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This Secretarial Standard is relevant to the General Meetings of any companies established under the Companies Act, 2013.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This <\/span><b>Secretarial Standard -2<\/b><span style=\"font-weight: 400;\"> does not apply to a One Person Company (OPC) that is licensed under Section 8 of the Companies Act, 2013, or any other previous law.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">At least 21 days before the meeting, a notification will be provided, including any relevant documents. A more concise or brief notice.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Approval can be granted if written permission is obtained either through physical or digital methods from a minimum of 95% of the eligible members who have the right to vote in the said meeting.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The notice should include information regarding the meeting&#8217;s agenda, explanatory notes related to the agenda, an explanatory statement by Section 102 of the Companies Act, 2013, an attendance slip, a proxy form, and a route map.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Evidence of notification should be retained for a minimum duration of three years, starting from the meeting date.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A notice of at least 3 days is to be provided If the meeting is postponed for more than 30 days.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Annual General Meeting `needs to be held by every company every financial year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">After the financial year conclusion, the AGM should be held within 9 months.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">After the first <\/span><a href=\"https:\/\/en.wikipedia.org\/wiki\/Annual_general_meeting\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">AGM<\/span><\/a><span style=\"font-weight: 400;\">, the next meeting should be held within 6 months from the end of the financial year.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For a public company, if the total number of members present is greater than 1,000, the quorum must be 5 members.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If the total number of members is from 1,000 to 5,000, the quorum must be 15 members.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If the total number of members is greater than 5,000, the quorum must be 30 members.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For a <\/span><a href=\"https:\/\/www.cagmc.com\/private-limited-company-vs-limited-liability-partnership\/#private\"><span style=\"font-weight: 400;\">Private Company<\/span><\/a><span style=\"font-weight: 400;\">, the quorum requirements are not specified in the given text.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Two individuals were present in person.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Throughout the meeting, enough participants must be present to constitute a quorum.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">When determining the quorum, proxies are not considered.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A proxy is authorized to represent a member, provided that their total voting rights do not exceed 50 and their collective share capital in the company does not surpass 10 per cent.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The minutes need to be recorded in the minute book within 30 days after the meeting has concluded.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">All meeting minutes should be retained permanently in both physical and electronic formats, including a timestamp.<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"alignnone wp-image-47717 size-full\" title=\"Secretarial Standard 2 \u2013 General Meeting\" src=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/11\/A-Comprehensive-Analysis-of-Secretarial-Standards-1-and-2-2-e1700302908129.png\" alt=\"\" width=\"1110\" height=\"516\" srcset=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/11\/A-Comprehensive-Analysis-of-Secretarial-Standards-1-and-2-2-e1700302908129.png 1110w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/11\/A-Comprehensive-Analysis-of-Secretarial-Standards-1-and-2-2-e1700302908129-300x139.png 300w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/11\/A-Comprehensive-Analysis-of-Secretarial-Standards-1-and-2-2-e1700302908129-1024x476.png 1024w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/11\/A-Comprehensive-Analysis-of-Secretarial-Standards-1-and-2-2-e1700302908129-615x286.png 615w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/11\/A-Comprehensive-Analysis-of-Secretarial-Standards-1-and-2-2-e1700302908129-400x186.png 400w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/11\/A-Comprehensive-Analysis-of-Secretarial-Standards-1-and-2-2-e1700302908129-292x136.png 292w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/11\/A-Comprehensive-Analysis-of-Secretarial-Standards-1-and-2-2-e1700302908129-768x357.png 768w\" sizes=\"(max-width: 1110px) 100vw, 1110px\" \/><\/p>\n<h2 id=\"conclusion\"><b>Conclusion<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In short, Secretarial Standard 1 is the foundation for proper corporate governance, that includes the fundamental principles. On the other hand, Secretarial Standard 2 use those principles with precise instructions, like adding the finer details to a painting. Together, these standards ensure companies operate efficiently, ethically, and transparently, building trust and reliability with their stakeholders. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Secretarial Standards 1 and 2, as defined under the Companies Act, 2013 are vital tools for companies to follow when [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":47721,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Secretarial Standards 1 and 2 - Goyal Mangal &amp; 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