Additional director neither regularised nor resigned

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2012 In a public company(unlisted) additional directors was appointed under section 260 of the Companies Act, 1956. This Director can neither be regularised in the AGM nor can be resigned at the date of AGM,
Section 260 of the Companies Act provides that if the appointment is not regularised in the AGM, the office will become vacant. So what can be the penalty for this non-compliance for Directors and the company secretary of that company ?
Thanks in advance.

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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17 October 2012 You need to file form 32 from date of first general meeting after his appointment to regularise him as a director.

Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2012 Sir, due to some internal problems it is neither possible to regularise the Director nor resign him. If he is kept as Additional Director even after AGM what will be the penal action towards Directors and Company Secretary ?

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CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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18 October 2012 If you file form 32 from back date it would be regularise and just additional fee is to be paid. Otherwise file form 32 for is removal with additional fee. Nothing to worry.

Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2012 Thank you so much sir for your kind help.

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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18 October 2012 My Pleasure..