Appointment of additional director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2013 Dear Experts

I was preparing Directors report for submission at the AGM. We had appointed a director on 24.05.2013 as an additional director whose appointment was regularized in the AGM convened on 27.09.2013.

However, while preparing Director's Report, I wrote the name of the additonal director as part of the Board of Directors. However, my Sir told me that since he has not been regularized, we cannot state his name in the list of Board of Directors.

I feel this is not justified because though he is an additional director, he occupies all the rights of a director and is also counted for fixing maximum strength of the board as prescribed by the articles.

Can you confirm if my understanding is correct.

Regards

Ajay Mishra

Ajay Mishra (Expert)
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16 October 2013 Hi

You will give the name of such additional director at the time of adoption of director Report. Unless he has not given the resignation his name will continue till the date of AGM.

So I will suggest you to download Annual Report of big companies and show the same to you sir.

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2013 Thank you for your response Sir.

We have mentioned the appointment of additional director in the director's report but his name is not written along with the existing directors of the company.

Eg. Mr. A and MR. B are existing Directors and Mr. C is an additional Director.

Format of the directors report :

''Board of Directors: 1) Mr. A and 2) Mr. B.

Mr. C was appointed as an additional director pursuant to the provisions of Section 260 of the companies act, 1956 and will hold office upto the date of this AGM.''

What I did is. I mentioned Mr. C's name also with Mr. A and Mr. B. This is what my Sir asked me not to do.

Please clarify

Ajay Mishra

Ajay Mishra (Expert)
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16 October 2013 No

See, their is no specific format for this, but yes you will mention the name of Mr. C with Mr. A and Mr. B, because as on date he is director.

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2013 Thank you so much for your clarification Sir.

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