Appointment of Director

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Ashish Kapil

Ashish Kapil (Querist)
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23 March 2011 Can a Director be appointed retrospectively

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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23 March 2011 Board cannot appoint the M.D/ Director with retrospective effect by ratifying the appointment. Reason behind this interpretation is proviso to sub section (3) of section 317.

for more info:-

https://www.caclubindia.com/forum/appointment-of-managing-director-66709.asp

Rasesh

Rasesh (Expert)
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23 March 2011 Strictly, No appointment can be made with retrospective effect.

Practically, Appointment is made with a back dated resolution and the procedural compliance is done in current date with additional fees. Which means the appointment is not retrospective but there is only a procedural failure in giving intimation at the right time.

In my view, Proviso to 317(3) refers to a situation in which the re-appointment is prohibited two years prior to the date of termination of the current tenure.

Ashish Kapil

Ashish Kapil (Querist)
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23 March 2011 Thanks for your reply

Rasesh

Rasesh (Expert)
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23 March 2011 If you Genuinely feel that the reply was useful, then you may thank the reply by clicking on the Thank User icon provided below the name of person who has replied.

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