Disqualification of director under sec 257 now 160
Vijay Anand
(Querist) 25 January 2017
This query is : Resolved
A person while being nominated to director ship in a public company failed to submit the deposit amount of Rs. 10000/=, a requisite under sec 257 / 160.
The Director was elected and appointed without noticing the error.
After a couple of years, the error was found. Can the director continue to be a director or does his appointment become null and void from the date of discovery as he is in violation of the rule.
Guest
(Expert) 25 January 2017
Board Resolution in Board Meeting Could Decide.
Vijay Anand
(Querist) 25 January 2017
Is the appointment not a subject of the general body
Guest
(Expert) 25 January 2017
Board Can decide in Board Meeting and Other Directors could Decide. Presenting it in AGM Not Required.
Ms.Usha Kapoor
(Expert) 27 January 2017
Agree with Raj Kumar Alias narsimha.
Rajendra K Goyal
(Expert) 27 January 2017
It seems, the amount one lac has been mis-typed by author as 10,000/-. This was a legal lacuna in the said appointment and there exist sufficient grounds to challenge the appointment.
Section 160 :-
Right of persons other than retiring directors to stand for directorship
1. A person who is not a retiring director in terms of section 152 shall, subject to the provisions of this Act, be eligible for appointment to the office of a director at any general meeting, if he, or some member intending to propose him as a director, has, not less than fourteen days before the meeting, left at the registered office of the company, a notice in writing under his hand signifying his candidature as a director or, as the case may be, the intention of such member to propose him as a candidate for that office, along with the deposit of one lakh rupees or such higher amount as may be prescribed which shall be refunded to such person or, as the case may be, to the member, if the person proposed gets elected as a director or gets more than twenty-five per cent. of total valid votes cast either on show of hands or on poll on such resolution.
2. The company shall inform its members of the candidature of a person for the office of director under sub-section (1) in such manner as may be prescribed.
Guest
(Expert) 27 January 2017
The Board could disqualify the Director basing on the Non Compliance of the Commitments by Board Resolution.The child who is an Anonymous with out any Identity should not Misguide the Innocent Querist
Vijay Anand
(Querist) 28 January 2017
What if the chairman of the board who enjoys the support of the majority of the board is the person in violation, would the decision not be biased..
