Director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2010 Hi,
An Unlisted public limited company is having three Directors (all of them are additional directors). Do the company is violation the any provisions of sec 255 of act. If the company wants to form Audit committee U/S 292A of act what is the procedure. Please advice me.

Rasesh

Rasesh (Expert)
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27 January 2010 The company is not in default or violation of any provision of companies act.

The procedure for formation of audit committee will remain the same, irrespective of the fact that all are additional directors. Pass a Board Resolution to form the committee and also specify the powers and responsibilities.

Querist : Anonymous

Querist : Anonymous (Querist)

29 January 2010 U/S 260 of act the additional director has to vacate the office during the next AGM irrespective of AGM happened or not. Assuming that no AGM happened then there will be no director for the company. Is it not violation of act.

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Rasesh

Rasesh (Expert)
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29 January 2010 If no AGM is held, the default is for not holding the AGM.

The Additional Director will retires automatically. Hence, further default is not regularised in three months. But why do you feel that AGM will not be held?