additional director vs director

237 views 5 replies

sohan k

4 Points Joined March 2019

A company wants to appoint MR. X as additional director, so is it mandatory for Mr. X to be or had been a director in other company? Can't a competent person not disqualified under 164 and was never a director earlier be an additional director?

Replies (5)

CA Mayur Todmal

Practicing CA

7756 Points Joined November 2011

1.NO

2.Yes

KARTHIK DAMLE

ARTICLED ASSISTANT

87 Points Joined June 2013

1. need not be 2. yes

sohan k

4 Points Joined March 2019

Thanks sir, yet my main question lies in sec 161(1) which inter alia requires an additional director as not the one who "fails to get appointed as a director in a general meeting", so what can one interpret out of such quoted line?

CA Mayur Todmal

Practicing CA

7756 Points Joined November 2011

If some one fails to get appointed as director in GM he can not be appointed as additional director.

say, you filed your nomination for the post of director in GM and shareholder not approved the same means you failed to get appointed as director in Gm. in this case you can not be appointed as additional director by board

KISHAN JAISWAL

PRACTICE

23 Points Joined June 2007

If some one fails to get appointed as director in GM he can not be appointed as additional director.

Say, you filed your nomination for the post of director in GM and shareholder not approved the same means you failed to get appointed as director in Gm for that Company Only. In this case you can not be appointed as additional director by board in that Company. In Other Company there are no any restriction.

It means in any Company Shareholder reject you to appoint as Director, then from Back door Board can not appoint you.

Read more at: https://www.caclubindia.com/forum/additional-director-vs-director-519524.asp?utm_source=popular_mail&utm_medium=email&utm_content=forum&utm_campaign=forum_hg1_27_2019