Additional director

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CS KINJAL SANGANI (Querist)

27 June 2012 hi, can any one let me know that, if the director is appointed as a additional director, then it is compulsory that the director will be retire after one year that is in next agm.and
Secondly,if the company has not filled any form in respect of him that is for removal or for appointing as a director in agm then what will be its poisition . He willbe a director or will not be a director. please let me know this.

Vineeta Bachhawat Golchha

Vineeta Bachhawat Golchha (Expert)

27 June 2012 Section 260 of Companies Act, 1956 clearly inter alia states that additional directors shall hold office only up to the date of the next annual general meeting of the company.

Hence at the next AGM if the Company has omitted to file any form for removal or appointing as director, the MCA electronic record will still show his name as Additional Director. However, it is on Company's part to comply with the Act and pass necessary resolution and do the filing, else the office held by Director may be treated as null and void.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

27 June 2012 Dear Kinjal,

The first proviso to Section 260 states that the additional director shall hold office only upto the date of the next annual general meeting of the company. Thus, an additional director ceases to hold office on the date of the annual general meeting held next after the date of his appointment as additional director.

The fact of cessation of the additional director will have to be intimated to the Registrar of Companies by filing e-Form 32 within 30 days from the day on which the contingency occurs.

In case if at the agm he is appointed as director, form 32 need to be filed within 30 days of appointment.

CS KINJAL SANGANI

CS KINJAL SANGANI (Querist)

27 June 2012 Thanks for the reply, but now if we file a form 32 for change in a designation and appoint him as a director of the company, then it will do as the date of the director appointed was 1.3.2010.
Then what will be the effect as director name is showing as an additional director on mca site with a appointed date as on 1.3.2010.
Then in case, sugeeset me what to do.

Ajay Mishra

Ajay Mishra (Expert)

27 June 2012 Hi

If you are appointing any person as additional director, then his tenure of directorship will end on the date of upcoming AGM. If you not regularise him as Director then his position will shown on MCA portal as additional director, until you not filed form -32 for resignation of director.

If you are regularize him, in AGM, then you will file again Form-32 with ROC about change of position of directorafter filing the MCA portal shows him as director and date shows as 01.03.2010 it meas he hold directorship in company from this date it does not talk about changes.

When you file Form-32 the designation will autometically chachenge.

Regards

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