Additional Director vacant

This query is : Resolved

Sachin p sunny (Querist)
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30 September 2024 An auditor has been appointed in a company where out of 2 one of them is an additional director.Does he have to vacate his position at the next AGM or not ?

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)
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15 December 2024 An additional director can hold office only up to the date of the next AGM or the last date on which the AGM should have been held if the AGM does not occur as scheduled. They need to be formally appointed by the shareholders in a general meeting (either AGM or EGM) to continue their term beyond this point. If no such resolution is passed, the additional director automatically vacates the office at the conclusion of the AGM.
However, the position of an auditor is distinct from that of a director. An auditor appointed at an AGM holds office until the conclusion of the sixth AGM following their appointment, unless they are removed earlier or resign. The appointment or re-appointment of auditors is typically ratified at each AGM.