Recently new trend of postponement of planned board meetings of listed companies has started. The excuses are given that directors are not available or the quorum is not complete.
This practice is very dangerous for a healthy investment environment. As many investors are keeping their eyes on those board meetings, but when they come to know that the board meeting has been postponed, it creates panic among them. Due to such postponements, there comes a high variation in share value on that day and many insiders take advantage of that situation.
Under the code of Corporate Governance, the Board of Directors of a listed company has to meet at least once in every quarter of the financial year. Written notices (including agenda) of meetings are circulated, not less than seven days before the meeting. Then every director must attend the meeting and it should be according to schedule, instead of postponed.
The concerned authorities are requested to direct all the listed companies to held their board meetings according to the plan, as a compulsion.
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