Additional director

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kumud (Querist)
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03 April 2012 As per Section 260 Additional Director is holds office upto the next AGM.

my query is, if there is an EGM before that AGM is in mandatory to regularize such additional director at the EGM or NOT?

Charu Srivastava

Charu Srivastava (Expert)
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03 April 2012 It is not mandatory to regularize in EGN.However you can do so..

kumud

kumud (Querist)
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03 April 2012 what are the consequences of wrong appointment of Director U/s. 260 of the Companies Act, 1956.

As interested directors voted in the meeting or appointment without Qumran??

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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03 April 2012 Provisions of Section 300 do not apply to private companies.

Unless therefore the AOA of a private company contains a prohibitory clause in terms of section 300, an interested director of a private company can participate in the discussion on the matter in which he is interested; his presence for the purpose of quorum in respect of such matter may be counted;he can vote on a resolution in respect of such matter.

kumud

kumud (Querist)
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03 April 2012 and if it is a public Company???

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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04 April 2012 The only legal consequence of a director voting on a resolution in which he is interested would be that his vote had to be excluded. A director, who knowingly contravenes the provision shall be punishable with a fine up to Rs. 50,000/-.

Any Business transacted or resolution passed is invalid unless quorum is present.

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