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Querist : Anonymous

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Querist : Anonymous (Querist)
19 October 2011 One Pvt Ltd Company having two directors only. One director has appointed one more director without the consent of other; I know the appointment of new one is NULL & Void but Tell me what is the status of contracts done by the said new illegal director.

The case is three year old but i got opportunity to challange it in the CIVIL & CLB office.

Your suggestions are most welcomed ? but answer must have legal support by section, regulation, case law etc.
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CS Suraj Arora

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CS Suraj Arora (Expert)
20 October 2011 Dear

As far as my thinking is concerned the contracts can not be challenge able...
being a director of the company he has implied authority to enter in to contract on behalf of the company with outsider...

now director is appointed and form 32 filed and regularized in AGM,,,then contracts entered by him on behalf of company are valid...
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