Director

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In a Public Company, out of 4 directors 1 is disqualified as not taking the qualification shares & other is disqualified by other grounds. What are the consequences and remedies available to the company as Directors strength is below limit i.e.3.

Replies (4)

One option would be to appoint new director from the back date and file form 32 with late fee. 

 

To decide the date of appointment of new directors figure out the date of disqualification of old directors.

 

For example if the date of disquali is january 1, 2010 then hold a BM in dec 2009 and appoint new dir and file form -32 with late fee.

 

Views of other members solicited.

But sir i want to know the legal consequences for reduction in minimum no of directors? is there any thing serious if the said period is more than 6 months?

First let me tell the period of 6 months as mentioned by you and as per section 45 is applicable to reduction of number of members of company below the statutory minimum which is 2 in case of private company and 3 in case of a public company.

As far as section 252 minimum numbers of directors is concerned section is silent regarding violation. So Penalty as provided in Section-629A will be applicable.

Check Section-629A for residuary penalty.

Thanks once again for guidance

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