21 August 2010
Thank you for your prompt reply to my query regarding the appointment of functional directors in govt companies (CPSEs).I have one more dbt, According to Sec. 260 additional directors shall hold office only up to the date of next AGM. In pursuance of Notification No.GSR 906, dated 30-07-1981 & GSR 577(E), dated 16th July, 1985 section 255,256,257,263,264,265,266 are not applicable to the Govt Companies (Section 620). In this situation, how we can appoint a functional director? Which is the section we have to comply? Can u explain…
21 August 2010
Yes as per 260 director who is appointed by Board will hold the office till AGM date only.
So at AGM u need to reappoint the functional director again.
Section 255,256 are related to directors retire by rotation. while in ur case Directors are not retiring they are regularised in AGM which is different form Sec 255 256
Also check the regulations in articles if any specific procedure stated for appointment of Director.
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