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pls help on sec 312

Mritunjay (ca final new) (78 Points)

05 May 2010

Appointment of a director by way of will- does it tantamount to assignment of office? pls also explain provision of sec 312>

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4 Replies

jagannadh (TRAINING MANAGER) (175 Points)
Replied 06 May 2010

PROHIBITION OF ASSIGNMENT OF OFFICE BY DIRECTOR (SEC.312)

ANY ASSIGNMENT OF HIS OFFICE MADE AFTER THE COMMENCEMENT OF THIS ACTBY ANY DIRECTOR OF A COMPANY SHALL BE VOID.

RECHECK UR QUESTION ONCE AND GET BACK TO ME.

ALL THE BEST

JAGANNADH

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Prasanth Nair V (ACA,ACS,CWA Final,Mcom) (557 Points)
Replied 06 May 2010

Assignment of office by a Director is Void, as is prohibited under section 312 of the Act.

But a Director can mention a person to be appointed as a Director in his will after he retires from the Directorship or after his Death. Bcoz after his retirement or Death, the office does not belong to him, so there is no question of Assignment of Office in such cases, which is not in Contravention of the Act.

Therefore appoinment by will doesn't amount to Assignment of office under Section 312.....

I think it's clear for u....

Ankur Garg (Company Secretary and Compliance Officer) (114778 Points)
Replied 06 May 2010

Appointment of a director by way of will does not amount to assignment of office read with section 312.

Where a director dies, the office held by him becomes vacant and therefore such office cannot be assigned to anybody. Therefore appointment of a new person in such office does not amount to an assignment within the meaning of section 312.

Oriental Metal Pressing private Limited Vs. B.K. Thakoor (1961)

Best Regards