Alternate Director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 October 2010 If a director acts as alternate director to a foreigner. Pl advise do we need to comply with formalities of his appointment and cessation every time the Original director attends the meeting. Is there any way out to reduce the documentation.

Ajay Mishra

Ajay Mishra (Expert)
Follow

14 October 2010 Dear Friend

Section 313 of the Act empowers a company to provide in its articles of associations or by resolution passed by the company in the general meting to empower the Board to appoint an alternate director in the place of any director who is absent for a period of not less than three months from the State in which the meeting of the Board are ordinarily held. Director in whose place alternate director is appointed is called original director.

The alternate director once appointed, has a right to continue until he resigns of his own accord or until the original director returns to the State in which the meeting are held. The moment of the original director comes to the State the appointment will cease irrespective of the duration of his stay therein.

You will appoint each time an alternate director when the foreign director absent from the state for more than three months.

Regards

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now