sec 259 of companies law

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 April 2010 "Sec259 - Increase in number of directors to require Governmentsanction.

In the case of a public company or a private company which is a subsidiary of a public company, any increase in the number of its directors, except :

(a) in the case of a company which was in existence on the 21st day of July, 1951, an increase which was within the permissible maximum under its articles as in force on that date, and

(b) in the case of a company which came or may come into existence after that date, an increase which is within the permissible maximum under its articles as first registered,

shall not have any effect unless approved by the Central Government; and shall become void if, and inso far as, it is disapproved by that Government :

Provided that where such permissible maximum is twelve or less than twelve, no approval of the Central Government shall be required if the increase in the number of its directors does not make the total number of its directors more than twelve."

Q-are the following required to take central govt permission
1. prescribed in AOA-15, current-10 proposed-13
2.prescribed in AOA-10, current-10 proposed-12

Jagruti (CS)

Jagruti (CS) (Expert)
Follow

29 April 2010 In case of 1, if articles are approved by Central Government than you can increase upto 13 without CG approval. As per Act maximum permissable is 12.

So in second case you need not take approval of CG is not required but you have to first amended the articles to 12 and than increase the Directors upto 12.

Querist : Anonymous

Querist : Anonymous (Querist)

30 April 2010 i think in the second case you are wrong plz refer nd post again..........

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