Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

case study

SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)

12 April 2010

can u tell me the legal treatment that there is 2 director in private company and both have died in accident. who is able 2 regulate the company.

Reply
Follow
Share

5 Replies

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 12 April 2010

legal heirs.........

Upgrade to CAclubindia Pro. Subscribe Now!

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 12 April 2010

Company does not affected by the death of the directors. It remains go and go....

regards,

ratan

1 Like

CS Jithesh (ACS,) (COMPANY SECRETARY ) (485 Points)
Replied 12 April 2010

Agreeing with Ratan, As long as shareholders are their, the company will not die, its a seperate legal entity. The directors are just agents. If drectors died then will appoint new directors.

Regards

CS Jithesh

ganesh bhandari (B.Com Final C.A. Final CS Article Clerk ) (239 Points)
Replied 12 April 2010

The Shareholders have the right to appoint the new Directors.

In case, the Directors were also the Shareholders then after their death the Shares pass on to their legal heirs or any person/s earlier appointed as Nominee by the Directors (while they were alive).

So the legal heirs have the right to appoint the new Directors (Also they can appoint themselves as Directors if they satisy the conditions mentioned in Companies Act, 1956) i.e. they should be major, should not be of unsound mind.

1 Like

CA Devender Chauhan (Group Financial Accountant) (1526 Points)
Replied 12 April 2010

Originally posted by : ganesh bhandari
	The Shareholders have the right to appoint the new Directors. In case, the Directors were also the Shareholders then after their death the Shares pass on to their legal heirs or any person/s earlier appointed as Nominee by the Directors (while they were alive). So the legal heirs have the right to appoint the new Directors (Also they can appoint themselves as Directors if they satisy the conditions mentioned in Companies Act, 1956) i.e. they should be major, should not be of unsound mind.