Director

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Dear members,

Pls let me know, Can a company appoint a Director in wholetime employment of the company, with no voting rights in the Board of Directors' meeting.

if yes, then how n wat r the procedures to be followed?

Pls reply. Its urgent.

Thnx

Replies (5)

Hi Shridhi

A Director once appointed has a right to vote in every board meeting (except where he has conflict of interest in the matter to be discussed). It is a right conferred by the Act.

Only shareholders shall be allotted shares with differential voting rights.


Regards,

Subbu

It means a director cant b appointed with no voting power. Right?

Absolutely Shridhi.. The power is given under the Act. It cannot be forfeited or prevented. At the most, he can abstain from voting in every board meeting. That too, if he wishes to do so.


Regards,

Subbu

Bt as per act, the powers are given to the Board and not to any individual director.

My frnd says that an MOU can be signed with the director while appointing him and then he can be appointed as so.

Wat to do????

Shridhi. .But practically no person will agree to such terms. The main right of directors is to vote and take decisions for the benefit of the company.

Logically speaking, that is not possible (but probable) unless the person to be appointed is so open-hearted and generous!! :):):):)


Regards,

Subbu


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