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Microlesson · 5-min read

Minutes of Proceedings - Section 118 & Rule 25

# Minutes of Proceedings of Meetings (Sec 118)

## What are Minutes?

Minutes are the official written record of proceedings of every general meeting, Board meeting, committee meeting, and resolutions passed by postal ballot. They are the legally recognised evidence of what transpired in a meeting.

## Key Requirements

### 1. Compulsory Recording

Every company must prepare, sign and keep minutes of:

  • General meetings (AGM/EGM)
  • Meetings of creditors
  • Board meetings
  • Committee meetings
  • Resolutions passed by postal ballot

### 2. Time Limit for Entry

Minutes must be entered in the minute book within 30 days of conclusion of the meeting.

### 3. Distinct Minute Books (Rule 25)

Separate minute books must be maintained for:

Type of MeetingMinute Book
General meetingsSeparate book
Creditors' meetingsSeparate book
Board meetingsSeparate book
Committee meetingsSeparate book

### 4. Signing of Minutes

  • Each page: Signed/initialled
  • Last page: Dated and signed
TypeSigned By
Board/Committee minutesChairman of same meeting OR next meeting
General meeting minutesChairman OR director authorised by Board
Postal ballot resolutionsChairman of Board OR authorised director

### 5. Place of Keeping

  • General meeting minute books: Registered office (preserved permanently)
  • Board/Committee minute books: Registered office OR another place decided by Board

## Reports of Meetings - Restriction

No document claiming to report proceedings of a general meeting can be circulated or advertised at company's expense unless it includes matters required by Sec 118 to be recorded in minutes.

## Secretarial Standards

  • Secretarial Standards (SS-1 for Board, SS-2 for General Meetings) issued by ICSI and approved by CG must be followed.
  • Exception: Not applicable to Specified IFSC Public/Private Companies.

## Penalties

DefaultPenalty
Company - non-compliance₹25,000
Officer in default₹5,000
Tampering with minutesImprisonment up to 2 years + Fine ₹25,000 to ₹1,00,000

## Postal Ballot Resolutions

A brief report must be entered including:

1. Resolution proposed

2. Voting result

3. Scrutinizer's report

## Exemption for Sec 8 Companies

Sec 118 does not apply to Sec 8 Companies, except:

  • Minutes must be recorded within 30 days (if AOA permits confirmation by circulation).
  • Exemption available only if company has not defaulted in filing financial statements (Sec 137) or Annual Return (Sec 92).

Worked example

### Example 1

Example 1: XYZ Ltd held its AGM on 1st April 2024. By what date must minutes be entered in the minute book?

Answer: As per Sec 118(1), minutes must be entered within 30 days from conclusion of meeting. Hence, by 30th April 2024.

### Example 2

Example 2: At a Board meeting of ABC Ltd, the chairman tampered with the minutes by inserting a resolution that was never passed. What is the consequence?

Answer: Tampering with minutes attracts imprisonment up to 2 years AND fine between ₹25,000 to ₹1,00,000 under Sec 118(12).

### Example 3

Example 3: A Sec 8 company has not filed its financial statements u/s 137 for two years. Can it claim exemption from Sec 118?

Answer: No. Although Sec 8 companies enjoy exemption from Sec 118 (except for the 30-day rule), this exemption is lost if the company has defaulted in filing financial statements (Sec 137) or annual return (Sec 92).

⚠️ Common exam mistakes

  • Confusing the 30-day period — it runs from conclusion of meeting, not from notice issue date.
  • Forgetting that the Sec 8 exemption is conditional on compliance with Sec 137 and Sec 92.
  • Believing all minute books can be kept together — separate books are mandatory for each type of meeting.
  • Assuming minute books of Board meetings must be kept at registered office — they may be kept at another Board-approved location (only general meeting minutes are mandatorily at registered office).
  • Confusing penalty for non-compliance (₹25,000) with penalty for tampering (imprisonment + fine).
Bare-Act text Section 118 read with Rule 25 of Companies (Management & Administration) Rules, 2014 · Companies Act, 2013 · click to expand
Sec 118: 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.
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