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Companies follow diverse secretarial practices. These practices have evolved over a period of time through
varied usages and as a response to differing business cultures. As an illustration, the Companies Act, 1956,
provides that companies must convene their Board Meetings by giving notice to directors in this regard.
However, no minimum period for giving such Notice has been laid down and, companies are at liberty to giveany or no length of notice for convening a Board Meeting.
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[Secretarial Standard]
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https://www.cakart.in/blog/?s=Secretarial%20Standards
**NEED FOR SECRETARIAL STANDARDS**
Companies follow diverse secretarial practices. These practices have evolved over a period of time through
varied usages and as a response to differing business cultures. As an illustration, the Companies Act, 1956,
provides that companies must convene their Board Meetings by giving notice to directors in this regard.
However, no minimum period for giving such Notice has been laid down and, companies are at liberty to giveany or no length of notice for convening a Board Meeting. Further, there is no requirement for sending
Agenda for the Meeting. Companies, therefore, follow varied practices with regard to giving Notices and
sending Agenda and Notes on Agenda for Meetings of the Board of Directors. Some companies specify the
business to be transacted in the Notice itself, while others send a separate Agenda. In addition, some
companies also send detailed Notes, explaining each item on the Agenda. While some companies send the
Agenda in advance of the Meeting, others place the Agenda at the Meeting itself. Even in case of those
companies which send the agenda in advance, the period varies. These divergent practices need to be
harmonised by laying down the best practices in this regard.
A need was, therefore, felt to integrate, consolidate, harmonise and standardise all the prevalent diverse
secretarial practices, so as to ensure that uniform practices are followed by the companies throughout the
country. Such uniformity of practice consistently applied, would result in the establishment of sound
corporate governance principles.
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