Appointment of directors

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2012 X, who is not a shareholder in a company sent a notice to the company, sent a notice to the company of his candidature for the office of director in the place of a retiring director at the ensuring annual general meeting of the company. The same company received another notice from Y, a member, holding only one share signifying his intention to propose the candidate of Z for the office of director in place of retiring director. As a secretary of the company how will you deal with this notice? Can any member present at meeting propose the aforementioned proposals for the consideration at the meeting?

CS Ankur Srivastava

CS Ankur Srivastava (Expert)

30 July 2012 The Company will entertain the notice of shareholder along with Rs. 500. This will be served as Special Notice.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

30 July 2012 Procedure laid down in section 257 of the Companies Act,1956 has to be complied with.

Ajay Mishra

Ajay Mishra (Expert)

30 July 2012 Hi

Both have right for candidature. You will follow the procedure of section 257, but appoint of two of them will depend on the proposal approved by the members on general meeting. If X is approved by shareholder then he will be elected as director of the company.

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