Well written and explained...bookmarked.....keep sharing.

when ever we post a good article it is not accpeted .. till now i have posted around 15 artilces till now  a single article is not accepted and no file is added ..

As per Section 260 of the Company act, stated that appointment of Additional Director made by Board of Director.

There is two condition shall be filfilled:-

1. Such appointment power stated in company article or Table A (Where applicable not exclde or modifed U/S 28).

2. The strength of Board Shall not exceeds.

There is no need to compliance of U/S 257 because Such director appointed as Rotation Director. 

with warm regards

GULHASAN

Originally posted by : Gulhasan
	As per Section 260 of the Company act, stated that appointment of Additional Director made by Board of Director. There is two condition shall be filfilled:- 1. Such appointment power stated in company article or Table A (Where applicable not exclde or modifed U/S 28). 2. The strength of Board Shall not exceeds. There is no need to compliance of U/S 257 because Such director appointed as Rotation Director.  with warm regards GULHASAN

An additional director holds office upto the next AGM i.e. he does not retire at the next AGM. Therefore he is not a 'retiring director'  within the meaning of sec 256 and 257 (explanation to sec 256).  Thus appointment of an AD as a regular director require compliane with sec 257.
 

yes AD is appointed by board but board cannot regularise him . for regularisation of AD in GM sec 257 has to be complied with.

Sec 260 related to appointment of AD is also applicable to a pvt co. but sec 257 is not applicable to a pvt co so in case of pvt co. regularisation can be done as per articles.

Your Bookmarked 

Best Regards

Ramesha.m

Originally posted by : CA Manish Malu
	yes AD is appointed by board but board cannot regularise him . for regularisation of AD in GM sec 257 has to be complied with.

As you know that AD peroid of office upto next AGM. If he is reappointed as Additonal Director, there is no need to discussion about AD in GM as it is appointed / reaapointed to him as AD so why are you say AD is regularisation in GM.

Appointment / reappontment in GM ONLY FOR Rotaional Director or may be Non Rotaional Director.

He is interested appointed as Rotaional Director the he shall compliance of Sec. 257.

Now, i guss you understand.

Regards 

Gulhasan

Please mention the provision where it is mentioned that AD can be reappointed as AD.

Originally posted by : CA Manish Malu
	Please mention the provision where it is mentioned that AD can be reappointed as AD.

can you define mening of appointment or reappointment then we will provide the provission.

Originally posted by : Gulhasan
	Originally posted by : CA Manish Malu yes AD is appointed by board but board cannot regularise him . for regularisation of AD in GM sec 257 has to be complied with. As you know that AD peroid of office upto next AGM. If he is reappointed as Additonal Director, there is no need to discussion about AD in GM as it is appointed / reaapointed to him as AD so why are you say AD is regularisation in GM. Appointment / reappontment in GM ONLY FOR Rotaional Director or may be Non Rotaional Director. He is interested appointed as Rotaional Director the he shall compliance of Sec. 257. Now, i guss you understand.   Regards  Gulhasan

Mr. Gulhasan 

Kindly Go through Section 260 of Companies Act. any Director who is appointed by Board of Director at Board Meeting is an Additional director. If he is regularise in General Meeting he will not be said as Additional Director. 

Totally agree with the view of CA Manish Malu.

Originally posted by : CA Manish Malu
	Please mention the provision where it is mentioned that AD can be reappointed as AD.

There is some conceptual error Manish Sir. Let me repair the same. There is no need for a provision which allows you to re-appoint an AD as AD. A person whose period of office is expiring as AD in the ensuing AGM can very well be re-appointed as AD again through a BR by complying ROC formalities. The same is possible as there is no restriction at all in law. (However the same looks very strange on the part of company due to yearly filing of form 32).

Further the practice of re-appointing an AD again and again shows the lack of secretarial knowledge. It is highly recommended to regularize AD by following the procedure given in section 257 (for public company) or by following the procedure given in Articles (for private company) for administrative convenience.

My personal practice

Let me also share my personal practice. I have never appointed a person through the route of section 260 in my entire career. I would also suggest you to straight away appoint a person in the general meeting under section 257 (for public company) or by following the procedure given in Articles (for private company). In this way you have a file single form 32 and there would be no need to remember the regularisation formalities. (I think the same is very much possible at least in unlisted companies with mgt. support.)

I hope the above would be of some help.