Dear all,
Plz clarify, the company involved is a listed one:
1. When a member propose a person to be appointed as Director u/s 257(1), can that director be a whole time director or simply a director?
2. Upon reciept of notice the company either gives individual notice to members or advertise in newspaper. While giving newspaper advt. is the company required to give the detailed resolutions & explanatory statments? or simply the fact of proposed candidature of director.
regards
Sharmila
Dear Sharmila,
As in this case, Sec 257, (1) & (2) says that if a Director is appointed through the proposal of any member, he can be appointed as Director only. for the Whole time Director, he/she will have to get the recommendation from Board.
Whereas, sub sec. 1A says that company shall inform its member of the candidature of the person for the office of the Director by serving the individual notices on the mebers not less than seven days before the AGM.
Provided that it shall not be necessary to serve the individual notices if the Company advertises such candidature not less than seven days befoer the meeting in at least two circulating in the place where the reg. office of the Company is situated of which one is published in English language and the other in the regional language of the place.
Note : Sub sec. 1 shall not apply to a private company unless it is a subsidiary to a public company.
Hope this clears your Doubt.
Regards,
Aditya.
just the facts are enough. Need not give explanatory statement.
Regards.
CAclubindia
