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Private company - Director Appointment

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Shefali Gupta

104 Points Posted on 03 October 2022

Can a person be appointed as director directly in AGM/EGM without being appointed as additional director by board in the private company?

Replies (4)

Quick Summary

Members of a private company possess the inherent right to directly appoint directors at an Annual General Meeting (AGM) or Extraordinary General Meeting (EGM). While the board has limited powers to appoint additional directors, these appointments are temporary until the next AGM. The procedural aspects outlined in Section 160 of the Act may not directly apply, but the fundamental right of members to appoint directors remains.

Guest

Definite a yes. One of the main powers of the members is to appoint Directors. The same can be directly appointed under Sec. 160 of the Act.

Actually the Board have been given limited power, in this regard, to appoint Director as they can only appoint as Additional and that too the same can only hold such appointment till the next AGM.

Shefali Gupta

104 Points Posted on 03 October 2022

But section 160 is not applicable on private company.

Guest

It only means that the procedural aspects as detailed in Sec.160 does not apply. The right of the member to appoint or put themselves forward for appointment is an inherent right.