Provisions of alternate director

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Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2014 Can a chairman of limited company also act as alternate director for a foreign director?

Ankur Garg

Ankur Garg (Expert)
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23 September 2014 No. You have misunderstood the concept of Alternate director.

Kindly refer section 161(2). The Board of Directors of a company may, if so authorised by its articles or by a resolution passed by the company in general meeting, appoint a person, not being a person holding any alternate directorship for any other director in the company, to act as an alternate director for a director during his absence for a period of not less than three months from India.

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Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2014 The chairman is a non independent and non executive director. He is also acting as alternate director for a foreign director. Is this a valid appointment under the Companies Act

Ankur Garg

Ankur Garg (Expert)
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24 September 2014 I do not think it is a valid appointment. Alternate Director can be appointed in place of a director who is temporarily out of India for some period. It is not an option to handle the situation arise due to non availability of a foreign director most of the time.

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