What is the difference between appointing an additional director and increasing the no. of director above the already appointed upto the limit specified in the articles..........
why a company will appoint additional director when it can increase the no. of director upto the limit and above 12 with CG approval..........??
Hi Ashish,
The concept of AD was introduced for the smooth working of the company u/s 260. As section 257 requires approval of shareholder through GM and by holding a quick BM u can appt AD immediately.
But it u appoint AD you have to confirm him in the next GM by following the procedure of section 257. reason being he can work only till the commencement of next AGM.
Best Regards
To check more discussion on additional director click the link below:
/forum/messages/2009/6/35424_appointment_of_director.asp
But, Mr. Ankur, will it not give unscrupulous power to the compnay to appoint the director in their BM and get him work till the Next AGM.......May be the director whom they think the shareholder will not elect, they will get him elected in AGM......also since that director not reqiure the CG approval also if limit exceeds 12, can't this be misused................????
CAclubindia
