LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Appointment of Director in Casual Vacancy

prasad (Company Secretary) (48 Points)

03 March 2010

Can any one tell me the groungs for appointing any Director in casual Vacancy. If possible provide me any writeup on that...Its very urgent.

Thanks in Advance.

Regards,

Prasad Keluskar

Reply
Follow
Share

6 Replies

Jagruti (CS) (Service) (1953 Points)
Replied 03 March 2010

The grounds for appointing any Director in casual Vacancy are Death, resignation or insolvency and not by efflux of the tim or retirement by rotation.

You can refer case of Srinivasan v. W.S. Subramanya Ayyar, (1932) 2 Com Cases 147: AIR 1932 Mad 100.

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 03 March 2010

Appointment of casual director

If an office of a director is vacated before expiry of his term, the resulting casual vacancy can be filled by the Board only at a board meeting u/s 262. The person appointed will act as director up to the date at which the "original" director would have ceased to be director. This provision does not apply to a private company. The provision, if any, in the Articles will apply. E-Form 32 for appointment of casual director should be filed by the Company electronically to the Registrar within 30 days from the date of appointment.

Tenure of casual director

The person so appointed will be eligible to act as a casual director till the remaining tenure of the director in whose place he was appointed by the company.

1 Like

J. Manivannan (Advocate & IP) (242 Points)
Replied 03 March 2010

Dear Ankur Sir, Kindly Can you explain the term “on returning of the Original director” ?

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 03 March 2010

There is nothing to explain except an inadvertent mistake on my part. Provisions of section 313 (Alternate director) unnecessarily mixed with section 262 and create confusion. You may check the duly rectified one. Inconvenience caused is regretted and thanks for the timely intimation.

Best Regards

1 Like

Ca Gaganjot Kaur (CA) (108 Points)
Replied 04 March 2010

the director filing casual vacancy is a non-rotational director

Varun Madaan (trainee) (32 Points)
Replied 30 August 2012

and what if such director who was appointed to fill up the causal vacany...the company wishes him to be appointed as regular director..

say Mr. A direcor died and Mr. B was appointed in his place the direcor to act until his remaining tenure finishes as a casual director....and then on the AGM the company wants him to be the director in due course can he be appinted as a director by following the route in sec. 257 ?