Sec. 259 query

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Yogesh Shah

Managing Corporate Finance

1051 Points Posted on 27 December 2012

Hi Guys,

Kindly make a reference to - Sec. 259 of Companies Act.

We obtained approval of MCA on 22.11.2011 to increase no. of Directors from 10 to 13 (Public Co). In this order, MCA instructed the Company to implement it within 12 months i.e. by 21.11.2012, Co was required to appoint new 3 directors, which Company couldn't implement.

Now, my question is -

what we (as a CA and/or CS of Company) have to do?

Shall we again perform the same procedure (Application in Form No. 24 >> Public notice in newspaper etc.)

OR anything else?

Replies (3)

Dipjyoti Majumdar

CA in service & CS. dipmaj@

3505 Points Posted on 27 December 2012

In my view, as the Company could not adhere to the CG Order within the time limit specified by CG, you need to perform the process afresh if you want to increase the number of Directors beyond 12.

Regards,

Dipjyoti Majumdar

CA in service & CS. dipmaj@

3505 Points Posted on 04 January 2013

Yogesh

To update, the maximum number of Directors have been increased from 12 to 15 in the Companies Bill 2012 passed in Lok Sabha on 18 December 2012.

Further, CG approval has been done away with, now only special resolution is needed for number of Directors beyond 15.

Regards,

Yogesh Shah

Managing Corporate Finance

1051 Points Posted on 08 January 2013

Originally posted by : Dipjyoti Majumdar
	Yogesh To update, the maximum number of Directors have been increased from 12 to 15 in the Companies Bill 2012 passed in Lok Sabha on 18 December 2012. Further, CG approval has been done away with, now only special resolution is needed for number of Directors beyond 15. Regards,