interpretation of section 260:

CA Anshu Agarwal (B€ @LW@¥$ ]-[@Pp¥) (1832 Points)

01 August 2010  

260. ADDITIONAL DIRECTORS.

Nothing in section 255, 258 or 259 shall affect any power conferred on the Board of directors by the articles to appoint additional directors:

 

Provided that such additional directors shall hold office only up to the date of the next annual general meeting of the company :

 

Provided further that the number of the directors and additional directors together shall not exceed the maximum strength fixed for the Board by the articles.

 

 

Interpretation

  • An additional director can be appointed by BOD only if articles empower the BOD to appoint additional director.

 

  • Appointment of additinal director does not require the approval of Central Government.

 

  • The total number of existing director plus additional director cannot exceed the maximum limit prescribed by the articles.

 

  • Additional director not to be rotational director and not to be count for number of rotational director as requried u/s 255.