Company Secretary 2004
1018 Points
Posted on 14 November 2011
Basic Law:
section 260 of the companies act, 1956 says that the tenure of the additional director will be only upto the date of AGM/due date of AGM, meaing thereby if he is not regularised in AGM he will vaccate the office of director automatically.(sec 283)
Present Case:
Now the question of alternatre director in place of additional director comes, here the position is same the alternate director will hold the office only upto the time of original director and it means the position of that original director will have to be safeguarded through reappointment/regularisation.