Additional director

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CS KINJAL SANGANI (Querist)
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16 June 2012 hi,
Can any one let me know that, director which are appointed in a company are always additional director of the company and then his approval is done in the AGM as a director.

ARUN KUMAR MAITRA

ARUN KUMAR MAITRA (Expert)
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16 June 2012 No, all the directors appointed in a company are not additional directors.They may be nominee director,alternate director,special director,M.D.,WTD,directorsappointed in a casual vacancy etc. Only additional directors tenure are upto the date of AGM.Other directors tenures depend upon the terms of their engagememt/provisions of the AoA.

Ajay Mishra

Ajay Mishra (Expert)
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16 June 2012 Hi

If a Board appointing any person then his/her period is limited so to make such director it is required to make his/her position regular if management think.

In case of additional director, the tenure of AD is up to next AGM after his/appointment. If the company require to regular such AD then it can do so in accordance with the provision of section 257 of the Companies Act, 1956.

So you can regularise him/her in general meeting or AGM as you think.

Regards

CS KINJAL SANGANI

CS KINJAL SANGANI (Querist)
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16 June 2012 Hence if the director appointed is not always a additional director, right, is it for any type of the company public or provate.

Ajay Mishra

Ajay Mishra (Expert)
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16 June 2012 Hi

Section 260 relating to appointment of additional director will apply to both public and private limited company.

The provision of section 257 regarding regularising of director will not apply only to private company unless it is subsidiary of public company.

CS KINJAL SANGANI

CS KINJAL SANGANI (Querist)
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16 June 2012 O.k. Thanks for giving the reply.

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