Regarding Regularisation of Additional Director

This query is : Resolved

Guest

Guest (Querist)

19 October 2009 Query Regarding Regularisation of Additional Director :

A is a Limited Company appointed ‘X’ as Additional Director on 01.06.09 in it’s board meeting.

The company adopts the financial year ‘Jan-Dec’.

The company had an EGM on 01.09.09.

However, on the EGM, the company failed to regularise ‘X’ as Director.

Is this a non-compliance ?

or

Can the company regularise in the subsequent EGM, if any or AGM ?

Await the experts' views.

Ankur Garg

Ankur Garg (Expert)
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19 October 2009 Hi,

In your case the term of Additional Director would be from 01.06.09 to the date of AGM of financial year 2008.

Please mention the date of your last AGM to proceed further.

Regards

Ankur Garg

Ankur Garg (Expert)
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19 October 2009 In any case if you hold AGM after 01.06.09 and fail to regularise Additional Director in that AGM then you are certainly on default read with section 260.

Failure to regularise in the EGM is not the criteria as appointment of Additional Director is valid till the next AGM.

However you may regularise him in the EGM if you are holding the EGM before AGM for certain other agendas.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 October 2009 As u very well know that the section concerned is 260. Proviso to the section says such additional director shall hold office only up to the date of the next AGM. But in the commentary, referring Krishna Prasad Pilani,s case, it is explained that an additional director vacates his office, at the latest, on the last day on which the AGM could have been called as required by the section 166 and cannot continue in office thereafter on the ground that the meeting was not or could not be called within the time prescribed by that section.
In view of the above, the office of the additional director became vacant on the DUE DATE OF AGM and could not be regularised in EGM.
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