Launch offer — 25% off with code LAUNCH-25 See plans →
Microlesson · 5-min read

Minutes of Meetings (Section 118 & Rule 25)

# Minutes of Meetings (Sec 118 & Rule 25)

## 1. Preparation & Time Limit

Every company must prepare, sign and keep minutes of:

  • General meetings of shareholders/creditors (incl. requisitionists' meetings)
  • Postal ballot resolutions
  • Board meetings and Committee meetings

Timeline: Within 30 days of meeting/resolution, in books with consecutively numbered pages.

Specified IFSC companies: Minutes of Board/Committee meetings must be signed at or before the next meeting.

## 2. Contents of Minutes

Minutes must contain a fair and correct summary and:

  • All appointments made at the meeting.
  • For Board/Committee meetings: names of directors present and dissenting/not-concurring.

## 3. Exclusions — Chairperson's Discretion

May exclude matters which are:

  • Defamatory
  • Irrelevant / immaterial
  • Detrimental to company interests

The Chairperson has absolute discretion.

## 4. Legal Presumptions

Where properly kept, minutes are:

  • Evidence of proceedings.
  • Meeting & resolutions presumed validly held.
  • All appointments deemed valid.

## 5. Prohibition on Circulating Reports

No report of general-meeting proceedings shall be circulated/advertised at company's expense unless it contains all matters required to be in the minutes.

## 6. Secretarial Standards

Follow ICSI SS-1 (Board) and SS-2 (General Meetings), approved by CG. Not applicable to Specified IFSC Public/Private Companies.

## 7. Penalty for Non-Compliance

PartyPenalty
Company₹25,000
Officer in default₹5,000
Tampering with minutesImprisonment up to 2 years + fine ₹25,000 to ₹1,00,000

## 8. Rule 25 — Procedure for Maintenance

  • Maintain distinct minute books: general meetings | creditors' meetings | Board | Committee.
  • Entries within 30 days.
  • Postal ballot: brief report incl. resolution, voting result, scrutinizer's report.
  • Signing:
  • Each page signed/initialled; last page dated and signed.
  • Board/Committee → Chairperson of meeting OR next meeting's Chairperson.
  • General meeting → Chairperson OR Board-authorised director.
  • Postal ballot → Chairperson of Board OR authorised director.
  • General meeting minutes → at registered office and preserved permanently.
  • Board/Committee minutes → at registered office or other Board-decided place.

## 9. Exemption for Section 8 Companies

Sec 118 does NOT apply to Sec 8 companies, EXCEPT 30-day recording rule, especially if AoA allows confirmation by circulation. Exemption applies only if no default in Sec 137 (FS) or Sec 92 (Annual Return) filings.

Worked example

### Example 1

Example 1 — Signing: AGM Chairperson Mr. X resigned before signing minutes. Answer: Board can authorise another director to sign per Rule 25.

### Example 2

Example 2 — Defamatory content: Director makes unsubstantiated allegations at Board meeting. Answer: Chairperson has absolute discretion to exclude defamatory matter.

### Example 3

Example 3 — Tampering: CS alters a resolution three months after signing. Answer: Tampering → imprisonment up to 2 years + fine ₹25,000–₹1,00,000.

### Example 4

Example 4 — Sec 8 company: Regular in Sec 137 & 92 filings; uses circulation route per AoA. Answer: Sec 118 exempt (except 30-day recording).

⚠️ Common exam mistakes

  • Stating all directors must sign — only Chairperson/authorised director signs.
  • Forgetting postal ballot proceedings also need minutes.
  • Confusing 30 days with 15 or 60 days.
  • Saying Secretarial Standards apply universally — IFSC companies are exempt.
  • Quoting tampering penalty as only a fine — imprisonment up to 2 years is also prescribed.
  • Treating Sec 8 exemption as absolute — needs clean Sec 137 & 92 record.
Bare-Act text Section 118 read with Rule 25 · Companies Act, 2013 · click to expand
Section 118: (1) Every company shall cause minutes of the proceedings of every general meeting of any class of shareholders or creditors, and every resolution passed by postal ballot and every meeting of its Board of Directors or of every committee of the Board, to be prepared and signed in such manner as may be prescribed and kept within thirty days of the conclusion of every such meeting concerned, or passing of resolution by postal ballot in books kept for that purpose with their pages consecutively numbered...
Now that you've read this — what's next?
Move from understanding → mastery in 3 clicks. Each option below picks up from this lesson's topic.
Start 15-min diagnostic