removal of additional director

Others 1086 views 3 replies

meenakshi modi

PCS

84 Points Posted on 05 March 2010

hi friends,

In a company an additional director was appointed. The Company wanted to remove the that director. That additional director can be removed in the session of another AGM. But there was a stay order from high court on that board resolution. Result of which the additional director was not removed.

Again there is a LAW which says that even after the stay on the board resolution additional director can be removed.

Narrate me on that.

can anyone plz help me with this...

regards

Meenakshi

Replies (3)

Kiran Toshniwal

Practicing Company Secretary

142 Points Posted on 05 March 2010

Hi,

The additional directors shall hold office only up to the date of the next annual general meeting of the company

Ankur Garg

Company Secretary and Compliance Officer

114788 Points Posted on 05 March 2010

Hi,

If you can bear that director till the next AGM than that would be great as he will automatically have to vacate his office in the absence of regularization as mentioned in section 260. As per section 260 an additional directors shall hold office only up to the date of the next annual general meeting of the company.

Regards

Ankur Garg

Company Secretary and Compliance Officer

114788 Points Posted on 05 March 2010

However in view of the below mentioned case stay order given by the court appears to be out of the jurisdiction of court and invalid.

Khetan Industries Private Limited Vs. Manju Ravindra Prasad Khetan

In this case it was held by the court that shareholders have a right to remove a director unde section 284 which provides an inbuilt machinery for the enforcement of right and civil court has no jurisdiction to entertain the suit for removal of directors.

Revert if there is any doubt.