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Alternate Director u/s 313

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bhavna

ca-final student

120 Points Joined September 2009

How come an Alternate director is a non rotational director?

A director in Alternate director u/s 313 is appointed in place of the original director and he can hold office till such time as permissible to the original director, then shouldn't his nature be same as the original director. If original director is rotational then so should he and if original director is non rotational, then he should also be non rotational.

Replies (1)

Sathyam

Student

38 Points Joined December 2011

There are 3 issues in ur question. Point.no.1 no where in the companies Act, it is said that, the alt.dir shud be rotational or non.rotational. Point.no.2 as per sec.255/256, the status of a director as non.rotational, shud be specified eiether in the articles, or in the resolution pased while his apointment. and rotational staus of a dir may be specificaly mentioned, or, if nothing is specified, he shall be deemed to be rotational. Point.no.3 there is no rule that, the provisions that aply to the original director shud also aply to alternate dir. b.cos, alt.dir is not a proxy, not an agent of original dir. the provisions wil aply same, as they aply to any other dir. alt.dir is also a dir in his own right. to say in a humourous way, alt.dir need not dance to the tunes of orig.dir. So, by harmonising above provisions, * no standard rule that an alt.dir shud be rotational or non.rotational. * if original dir is rotational, alt.dir need not. and same for non.rotational. @ T#¥ @ M