Additional director
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 November 2014
Sir,
One person was appointed as additional director.
Minutes is written as below.
"The chairman informed the board that it is in the best interest of Company to appoint Mr. X who has wide experience in the field of business, as additional director of the Company. The board discussed the matter and passed following resolution.
RESOLVED THAT Mr. X is be and hereby appointed as additional director of Company w.e.f. 1/5/2010.
RESOLVED FURTHER THAT Mr. Y Director of the Company be and hereby authorized to file form 32 with ROC to comply with provision of Companies Act,1956 and to do all things, deeds as may be necessary to give effect to this resolution.
Thereafter Mr. X occupied the seat as director and started taking the part in the proceedings of the meeting."
The said additional director is not regularised in AGM as director, is he ceased as per section 260 of Companies Act, 1956? or he can be considered as director?
Please reply,
One person was appointed as additional director.
Minutes is written as below.
"The chairman informed the board that it is in the best interest of Company to appoint Mr. X who has wide experience in the field of business, as additional director of the Company. The board discussed the matter and passed following resolution.
RESOLVED THAT Mr. X is be and hereby appointed as additional director of Company w.e.f. 1/5/2010.
RESOLVED FURTHER THAT Mr. Y Director of the Company be and hereby authorized to file form 32 with ROC to comply with provision of Companies Act,1956 and to do all things, deeds as may be necessary to give effect to this resolution.
Thereafter Mr. X occupied the seat as director and started taking the part in the proceedings of the meeting."
The said additional director is not regularised in AGM as director, is he ceased as per section 260 of Companies Act, 1956? or he can be considered as director?
Please reply,
03 November 2014
He can't be considered as 'Director' since not regularized in the first General Meeting due/held after 1.5.2010.
gbalakrishnan
(Expert)
30 September 2015
it is mandatory requirement that general body has to approve any director appointment on board of directors, if failed it has to be regularized.
when you appoint qualified company secretary it becomes mandatory the CS has to see every procedure is followed, if he has no right reason for regularizing his slip in the procedure.
the doctrine is company too is some kind of democratic governance in practice, as share holders are like the people in the real democracy.
the directors are like some representatives as law makers in the company concerned and all resolutions are some delegated function type, that way there is there too democratic right of the investors are protected.
that made only the mandatory f appointing a qualified company secretary like a cabinet secretary in government.
cabinet secretary need to ensure all relevant laid down procedures are strictly followed by the cabinet = board of directors in a public limited companies, in short.
when you appoint qualified company secretary it becomes mandatory the CS has to see every procedure is followed, if he has no right reason for regularizing his slip in the procedure.
the doctrine is company too is some kind of democratic governance in practice, as share holders are like the people in the real democracy.
the directors are like some representatives as law makers in the company concerned and all resolutions are some delegated function type, that way there is there too democratic right of the investors are protected.
that made only the mandatory f appointing a qualified company secretary like a cabinet secretary in government.
cabinet secretary need to ensure all relevant laid down procedures are strictly followed by the cabinet = board of directors in a public limited companies, in short.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST on reimbursement of expenses
- Query on effect of registration of property
- Visiting card purchase
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Foriegn assets disclosure
- Wrong CMPo8 file
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Whether output tax is taken credit by purchaser
- Equity Share Sale and Purchase
- Additional trade name
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
