Section 160 read with section 161 of co.act 2013

As per section 160 of CA 2013, a person shall be eligible to be appointed as the director in the general meeting if he or any member propose that person ot be a director by sending a notice at registered office of the company at elast 14 days before the meeting along with deposit of rs. 1 lakh.

hence, any appointment made in agm is not as per the act, therefore the appointment is not valid and the company and its officers can be punished under section 172 of the CA 2013

Thanks a lot Sir.

But my query is still open. Do Director have to give Rs.1,00,000/- as an security deposit while regularzing of his position from Additional Director to Director.

Thanking you

Yes, deposit is mandatory.  As per Section 160 deposit of Rs.1 lac can be given either by the director  himself or some member intending to propose him as a director.

Thank you so much sir.