Section 262 caual vacancy

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2011 I need to ask about if a rotational director had died and we filed casual vacancy then what will be the tenure of new director and how he will be a non-rotationla director?????

CS Pawan Kumar Baid

CS Pawan Kumar Baid (Expert)
Follow

03 November 2011 Tenure of new director will be the date on which original director would have hold office.

This new director will be called non-rotational director.

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2011 as stated in MB sir's book every director apptd. u/s 262 is a non rotational director

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2011 as stated in MB sir's book every director apptd. u/s 262 is a non rotational director

CS Pawan Kumar Baid

CS Pawan Kumar Baid (Expert)
Follow

04 November 2011 Following is exact text of Sec 262(2): -

(2) Any person so appointed shall hold office only up to the date up to which the director in whose place he is appointed would have held office if it had not been vacated as aforesaid.

by reading above, it is not clear that he is eligible for automatic re-appointment or not. If he is appointed by General meeting, provision of automatic re-appointment should be applicable. But as he is appointed by BoD, hence in my opinion he is non rotational director. He will retire in the same way as rotational director, but not be re-appointed automatically. If resolution to appoint him is passed at AGM, he will be rotational director thereafter.

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