prabhu (Business) (52 Points)
01 July 2008Hi,
What does we mean by Additional Director?
How, when and in what circumstances he can be appointed for a Pvt. Ltd Company.
Does he can be appointed without his presence, just by the approval of other 2 directors of that company.
Does the designation also carry with itself any financial liability for company's payments or losses.
Your answers are welcome.
Regards,
Prabhu.
Rekha Sharma
(Company Secretary)
(167 Points)
Replied 01 July 2008
Additional directors are appointed by the board who hold office till the date of AGM their appointment will be approved in AGM by the shareholders by passing the ordinary resolution.
Such directors may be appointed without their presence in board meetting provided written consent has been obtained (in case of pvt ltd company such consent is not compulsory). Just go through sec.260 of the Companies act 1956.
About financial liablity ? Answer is yes .
Regards
Rekha Sharma
CAclubindia
