Newsletter
WRITTEN NOTICE OF BOARD MEETINGS
In a legal interpretation dated 29 October 2001, the MOEA stated that according to Article 204 of the Company Law, the notice of a meeting of a company's board of directors must be commu-nicated to all directors seven days in advance, stating the business to be discussed; but in an emergency, a meeting may be convened at any time. "Stating the business to be discussed" means that notice of the meeting must be given in writing. "Emergency" means a matter that arises suddenly and requires urgent discussion and de-cision by the board of directors; therefore, in such cases a meeting may be convened without giving notice seven days in advance. The law makes no explicit provision as to whether an emergency meeting of a board of directors re-quires written notice, so this is a matter for cor-porate self-governance. In principle, written notice should still be given; but if the company's articles of incorporation provide otherwise, such provisions should apply. If a dispute arises among shareholders on this issue, the dispute should be solved by the court.