15 September 2012
Refer Section 257, 257(1) Clearly starts with A person who is not a retiring director shall.........., means retiring director are excluded from the purview of Section 257.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
15 September 2012
i completely understand sir. But company has beenn following the same since last 2 - 3years. I cannot rectify past records, but in case company demanded deposit this year, will it be illegal?
15 September 2012
Here the money received is not as per Companies Act, so cannot be maintainable and its not that any mistake done in past be repeated, close this practice. There is nothing wrong. Companies Act has nowhere mentioned to follow custom. Close this practice from this year there will be no illeffect on the Company.