Section 257 of the companies act

This query is : Resolved

sssvkSridharan R. (Querist)
Follow

24 April 2012

Section 257 of the Companies Act, 1956 reads as follow

257. RIGHT OF PERSONS OTHER THAN RETIRING DIRECTORS TO STAND FOR DIRECTORSHIP.

A person who is not a retiring director shall, subject to the provisions of this Act, be eligible for appointment to the office of director at any general meeting, if he or some member intending to propose him has, not less than fourteen days before the meeting, left at the office of the company a notice in writing under his hand signifying his candidature for the office of director or the intention of such member to propose him as· a candidate for that office, as the case may be along with a deposit of five hundred rupees which shall be refunded to such person or, as the case may be, to such member, if the person succeeds in getting elected as a director.

…, if he (=such person) or some member intending to propose him has left at the office of the company a notice…

The above said notice should be left at the office of the company either by such person or some member. No doubt.

…a notice in writing under his (=such person’s) hand signifying his candidature for the office of director or the intention of such member to propose him as a candidate for that office….

Under whose hand should the notice be in writing? Whether under such person’s hand or under such member’s hand? – I can not understand.

Ajay Mishra

Ajay Mishra (Expert)
Follow

24 April 2012 Hi

Please read as follow:

Section 257 talk about a person appointed as director other than retiring director, under which proposal will be made by two way:
1. By the person standing for directorship or
2. By any Member proposing him

For example: Mr. A himself propose him as candidate for directorship and Mr. Y as shareholder proposing Mr. A as director and both sending a notice to the company for appointing Mr. A along with Rs. 500 as a fee. If Mr. a is elected and his notice is considered then his money will be refunded and Mr. Y money will be forfeited.

Regards

Message likes : 1 times

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

24 April 2012 i) If the notice is the candidature, necessarily it should be written by the hand of the candidate.
ii) If the notice is to express the intention of a member to propose a candidate for directorship, it has to be written by the hand of the member concerned.

Message likes : 1 times

sssvkSridharan R.

sssvkSridharan R. (Querist)
Follow

24 April 2012 Dear B. Chackrapani Warrier,

Suppose Mr. A is a member of a company and Mr. C is a non-member of the company. Now Mr. A wants Mr. C to be appointed a a director of the company and Mr. A, as you explained, leaves a notice in writing under his hand at the office of the company. How can the company know whether Mr. A has left the notice with the consent of Mr. C or without the consent of Mr. C? Is it confusing?

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