21 July 2010
What is the procedure to become director of a public ltd co.? I m having 30% holding in a public ltd co. And current MD (whole time director) is having 51% holding in co. But he does not intend us to enter the co as management. But there are another 2 directors (who have just 2-3% holding in the co) who favor us to become director of the co. Plz advise if favor of 2 directors and oppose of the MD will decline my becoming director of the co.? OR other shareholders also have to vote for me to enable me to become director of the co.?
21 July 2010
under section 257 a shareholder can propose the name for the director and make a representation to the company.If the representation is accepted in the general meeting with majority votes you will succeed to be a director.
Specific to your query, try to get as many shareholders in your favour as possible and get the resolution passed at the AGM BY SHOW OF HANDS. If there is a dispute in the AGM where the MD has arranged for a few shareholders to oppose your appointment, then the MD will get an opportunity to put the resolution on poll. If the resolution is put to poll, then your chances of winning are slim as the MD already holds 51%.
Siliently create your supporter base and try to get the resolution passed by show of hands with majority in your favour.