Alternate Director Appointment & Cessation

This query is : Resolved

Guest

Guest (Querist)

16 March 2011 Dear Friends / Experts,

ABC Pvt Ltd, a Chennai Company has two directors X & Y, who are in abroad.

Company decides to have two Alternate Directors to act on behalf of X & Y.

X visits Chennai and attends land registration matters, which is fully relating to the company.

Query 1

Whether Alternate director for X shall be vacated automatically due to the Chennai visit by X.

Ans : ..................

It may be noted X is not reporting to company (but the work attended by him is relating to the company).

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Query 2

Whether Alternate director for Y shall be vacated automatically due to the Chennai visit by Y.

Ans : ..................

It may be noted that Y has not reported to the company and did not even inform the company of his visit. He then returned back to abroad.

Company was aware of the details only after 6 months or so.

Is there any omission of compliance for such travel by Y ?

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Experts may speak out from practical experience.

Thanks and shall await views.

udit sharma

udit sharma (Expert)
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16 March 2011 As per the provisions of section 313 of the Companies Act, 1956 as and when the original director returns to the state where the BM are ordinarily held, the Alternate Director has to vacate his office.

1. As and when Mr. X returns to Chennai, his alternate Director has to vacate his office.

2. Similarly alternate Director to Y has to vacate his office as and when Y returns to Chennai.

But I m a little bit confused about the provisions of section 313. It says that as and when the original director returns to the state where the BM are ordianrily held, his alternate has to vacate the office.

As in the above case, when Mr. Y has returned to the state he has not intimated the same to the Company, how will nebody come to know that he has returned and his alternate has to vacate the office?

Experts ur views please on the matter.....

But if we don show that the Original Director has returned to the state, how can nebody come to know that the original director has returned back.

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