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directorship

NIKUNJ (NIL) (131 Points)

16 April 2016

Mr a is the director in ABC limited. amended article of ABC limited shows that after the death of Mr a, his son will be appointed as a director subject to qualifications of directorship. Mr a died and his sons gets all the qualifications of directorship. so this is viable under companies act 2013…?

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4 Replies

TARUN SINGHAL (student) (41 Points)
Replied 16 April 2016

No Mr. Nikunj.
It is not viable under companies act, 2013 as it would lead to overriding of act.Anything written in memorandum can not make appointment legal..so it will not be allowed

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Pratik Shah (Practising Company Secretary) (4432 Points)
Replied 18 April 2016

I agree with Tarun bhai. Directorship can not be obtained by way of succession. Director can only be appointed by way of following provisions of Companies Act.

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 18 April 2016

He has to be appointed by way of Resolution.

Jatin Bajaj (CS) (2930 Points)
Replied 19 April 2016

Firstly his son has to fulfil the criteria of additional director as per section 161 (1) and such a director can be appointed in a Board Meeting by passing Board Resolution and regularize in Coming AGM.

SO, he Could not be appointed by the way of Succession. Such aperson can be appointed by fulfilling the criteria under the Companies Act 2013