03 December 2012
As per section 260 Board of a company may appoint additional Director his appointment is valid upto next AGM My query is whether he can be reappointed as additional director again instead of regular director?
03 December 2012
He can be reappointed as additional director again instead of regular director only if he not not appointed in the AGM and after the AGM date only.
The person so appointed can act as an additional director up to the date of next annual general meeting. This provision is not meant to enable the company to keep on its Board a person as additional director for an indefinite period of time by not holding the annual general meeting.If he is not regularise at AGM he will autometically vacate the office of director. After that in a Board Meeting you can again appoint him ad AD till the next AGM.
If a person while he was the additional director of a company had been appointed as the managing director, the later appointment also ceases simultaneously with the cessation of his directorship at the commencement of the annual general meeting. However, if such a person is re-elected as full-fledged director at the annual general meeting and thereby he continues as a director of the company, he shall continue as a managing director also for the period for which he is so elected by the annual general meeting.
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