Additional Director
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 January 2011
Can a director of XYZ company ltd (the company) be nominated by a wholly owned subsidiary of the company and the appointed as an additional director of the company.
I have a doubt like a wholly owned subsidiary has no interest in the holding company then on what basis can the wholly owned subsidiary nominate a director to the holding co.
I have a doubt like a wholly owned subsidiary has no interest in the holding company then on what basis can the wholly owned subsidiary nominate a director to the holding co.
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 January 2011
As per Sec 260, articles cannot take away the powers of the BoD to appoint an additional director.
Hence it is clear that without BoD resolution, an additional director cannot be appointed.
Now whether a subsidiary can nominate an additional director?
A shareholder, a promoter, a group company, a lender or a foreign collaborator can nominate any director of the company.
So, even if a nomination for appointment of additional directors is made by a wholly owned subsidiary, it is not valid unless and until the BoD resolves the appointment in favour of such person.
Hence it is clear that without BoD resolution, an additional director cannot be appointed.
Now whether a subsidiary can nominate an additional director?
A shareholder, a promoter, a group company, a lender or a foreign collaborator can nominate any director of the company.
So, even if a nomination for appointment of additional directors is made by a wholly owned subsidiary, it is not valid unless and until the BoD resolves the appointment in favour of such person.
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
- Reporting Income under Section 44ADA
- Itr 1 processing
- Off Market debit and credit transaction
- ITR 2 Short Term gain & Long term gain
- Showing Gift from relative in ITR for this year
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR selection for salaries and capital gain less than L
- ITR returnFY25-26
- ITR 1: Details for showing Exempt Income
- Share accounting-->fifo - capital gain - period as per fifo?
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public 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
