Additional director status in the absence of any agm

Pvt ltd 525 views 1 replies

Dears

Any one can help me in knowing the status of an additional director in the absence of any agm conducted after the appointment. The additional director appointed is continued as director of the company or not after the due date for conducting the AGM. Kindly share me the status of an additional director will be continued as a director in the absence of conducting the AGM by the company for several years.

Thanks

Tiru

Replies (1)

Dear Thirumaleswara Rao,

By virtue of proviso to section 260 additional director stands vacated his office on the last day on which agm should have been held in terms of sec.166 of companies act, 1956. There are several verdicts given by apex court on this issue.

Not holding agm for several years would be cost effective to the company. 


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