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Principle of Proportional representation

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C.A. Pulkit Garg (Querist)
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29 May 2016 Dear Expert, What is the meaning of Principle of proportional representation as provided for the appointment of directors under companies act,2013

Jatin Bajaj

Jatin Bajaj (Expert)
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30 May 2016 According to section 163 of Companies Act 2013, Article of Company provides for appointment of atleast 2/3rd of Directors. However it sis not mandatory for Company to insert such provision in Articles.. If there is any contradiction in any other section under the act provision of this section shall prevail. According to Principal of Proportinate representation, minority shareholders will appoint Director and such a Director appointed under this section shall not be removed as per section 169 of Companies Act 2013. Such a Director shall be appointed once in three year. And Directors shall be appointed by passing Board Resolution at Board Meeting. Single transferable vote or by system of Cumalative voting means , the name of each person to be appointed as candidature of director shall be entered in ballot paper and each person shall have one vote.

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