Section 7 of The Securities and Exchange Board of India Act, 1992
- (1)The Board shall meet at such times and places, and shall observe such rules of procedure in regard to the transaction of business at its meetings (including quorum at such meetings) as may be provided by regulation.
- (2)The Chairman or, if for any reason, he is unable to attend a meeting of the Board, any other member chosen by the members present from amongst themselves at the meeting shall preside at the meeting.
- (3)All questions which come up before any meeting of the Board shall be decided by a majority votes of the members present and voting, and, in the event of an equality of votes, the Chairman, or in his absence, the person presiding, shall have a second or casting vote.
Summary
- The Board must meet at specific times and places, and follow rules of procedure set by regulation.
- These rules of procedure include setting the quorum, which is the minimum number of members needed to hold a valid meeting.
- The Chairman leads the meetings, but if the Chairman cannot attend, the members present will choose another member to lead that specific meeting.
- All questions at a meeting are decided by a majority vote of the members who are present and voting.
- If there is a tie in the voting, the Chairman, or the person leading the meeting, gets a second or casting vote to break the tie.
Practical examples
FAQ
1. Who decides when and where the Board will meet?
The times, places, and rules of procedure are provided by regulation.
2. What happens if the Chairman is absent from a meeting?
The members who are present will choose one of themselves to preside over the meeting.
3. How does the Board settle disagreements during a meeting?
Decisions are made by a majority vote of the members who are present and voting.
4. What occurs if a vote ends in a tie?
The Chairman, or the person leading the meeting, uses a second or casting vote to break the tie.
Test yourself
Q1.Under Section 7 of The Securities and Exchange Board of India Act, 1992, how are questions that come up before a Board meeting decided?
Q2.Under Section 7 of The Securities and Exchange Board of India Act, 1992, what happens if the Chairman is unable to attend a meeting?
Q3.Under Section 7 of The Securities and Exchange Board of India Act, 1992, what is the rule if a vote on a decision results in a tie?
Q4.Under Section 7 of The Securities and Exchange Board of India Act, 1992, where are the rules of procedure regarding the transaction of business and quorum found?