Arvind Sharma (ACA) (1432 Points)
20 September 2010Dear All..,
As per Sec 270, a Director who is appointed shall is required to obtain SQ (if AOA so required).,
My question is whether, First Director, whose name is mentioned in AOA as Director is required to obtain SQ...??
As per my views, the answer is NO., because, there is no appointment.., and Section 270 attracts when there is an appointment..
Further, whether will it make difference if appointment is in BM or GM..?????
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 20 September 2010
Good attempt Arvind but disagree to your views.
Section 270 does not differentiate between director appoint through BM, GM or through AOA as first director. Avoid adopting literal interpretation of the word “appointment” used in section 270(1).
Exempted Directors are:
1. CG Director u/s 408
2. BIFR Director
3. Nominee Director appointed through statutory Acts.
4. Directors who by AOA are not required to hold QS.
Best Regards
Arvind Sharma
(ACA)
(1432 Points)
Replied 20 September 2010
so that mean we have to interpret "appointment" as "holding of office of Director"........??
am I right...??/
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 20 September 2010
Yes...If provision for QS is there in AOA than equally applicable to a director appointed through AOA.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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