Applicability of provisions of Sec.160 to additional director

[shambhavi m sham]

Dear All,

Greeting of the day.

One of the unlisted public company has appointed additional director as per the provisions of section 161 of the Companies Act, 2013.

Whether it is mandatory for such additional director to deposit Rs. 1,00,000 with the Company, 14 days prior to the date of AGM in order to comply with the provisions of section 160  of the Companies Act, 2013?

Please guide me on the above.

Regards,

Shambhavi.M

 

 

[VIMAL SHARMA Compliance]

Yes coz directors to be appointed in General Meeting Only. refer 152(2)

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[shambhavi m sham]

Thank You.

[Deepesh Nayak]

Dear Sir,

Why it is necessary to deposit Rs. 1 lacs because the person has already appointed as director.??

Deepesh

Thanking you,

*CS Deepesh Kumar Nayak*
 Company Secretary

 *Mob. 097134-80215*
*csdeepe...@gmail.com*

[Arvind Kumar]

Does this Provision is applicable to Private Co also?

[Deepesh Nayak]

As per my interpretation, the requirement of deposit of Rs. 1 lacs will arise only in case if any person propose his candidature as director in the company or any member propose him as director.

If Company appoints director suo moto than it is not necessary to deposit rs. 1 lacs.

other views are welcome.

Thanking you,

*CS Deepesh Kumar Nayak*
 Company Secretary

 *Mob. 097134-80215*
*csdeepe...@gmail.com*

[VIMAL SHARMA Compliance]

Dear Mr. Deepesh,

Person is appointed as director up to that General Meeting.If you like to appoint him beyond general meeting, you will have to follow sec-160.

Once refer sec-152 read with sec-160

On Fri, Jun 6, 2014 at 3:51 PM, Deepesh Nayak <csdeepe...@gmail.com> wrote:

[Deepesh Nayak]

Sir, if the deposit of Rs. 1 lacs is mandatory, then the suitable section is section 161 which should contains such provisions, however it doesn't talk about this.

As per section 152, only general meeting has power to appoint director unless save as provided expressly in the act and section 161 allows to board for appointment of director.

The logic behind deposit of rs. 1 lac is more important here that why act provided for this.??

I read all sections as you referred but still not agree. Kindly guide us further on the same.

Thanking you,

*CS Deepesh Kumar Nayak*
 Company Secretary

 *Mob. 097134-80215*
*csdeepe...@gmail.com*

[ramela rangasamy]

Section 160- deposit of Rs.1 Lakh applies to all person (inclusive of Additional Director) other than retiring directors.

It is applicable to all companies.

 

Yours truly,
R.Ramela
Company Secretary in Practice
A-6, Aaryaa Harmony Apartment, A.S.Colony,
Police Kandasamy Street, Olympus,
Ramanathapuram,
Coimbatore 641 045.
Cell No.9442617180
Phone No.0422 – 2317180
e-mail: ram...@rrcompanysecretaries.com

[Manju]

yes agreed. thats why plan to appoint directors in GM.

 

 

 

On Friday, June 6, 2014 3:38:43 PM UTC+5:30, shambhavi m sham wrote:

[aashish golcha]

Dear All,

When an additional Director is appointed as per S.161, there is no need to comply with S.160. As Mr. Deepesh said, S.160 will be applicable only in case if any person propose his candidature as director in the company or any member propose him as director.

In the next AGM he shall be confirmed as a Director.

Even S.152(2) starts with "save as otherwise provided....." Hence in case of additional director appointment we will have to follow only S.161.

Other views are welcomed.

Regards

Aashish A Golcha

9710192058

[KHUSBU KHEMKA]

Dear Friend

As per my interpretation to avoid confusions to deposit of Rs 1 lakhs, either I would like to appoint Addnl. Director in BM or if in EOGM provided he is liable to retire by rotation. 

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Regards

ACS KHUSBU KHEMKA

[Deepesh Nayak]

What an illogical provision that in case of additional director, he has to deposit Rs. 1 Lacs also.

First BOD appoint him suo motto and then in general meeting he call for deposit for continuing as director.

Thanking you,

*CS Deepesh Kumar Nayak*
 Company Secretary

 *Mob. 097134-80215*
*csdeepe...@gmail.com*

[Mohammad Khalid]

I have recently appointed Directors by calling an EGM without depositing 1 Lacs. I agreed to you Mr. Nayak that if a  person himself gives his candidature than the concept of depositing Rs 1 Lakh arises not when the Board or Shareholders suo-moto agrees to appoint a person as director.

On Monday, June 9, 2014 10:12:52 AM UTC+5:30, Deepesh Nayak wrote:

What an illogical provision that in case of additional director, he has to deposit Rs. 1 Lacs also.

First BOD appoint him suo motto and then in general meeting he call for deposit for continuing as director.

Thanking you,

*CS Deepesh Kumar Naya
 Company Secretary

 *Mob. 097134-80215*
*csdeepe...@gmail.com*

[KHUSBU KHEMKA]

Hello Friends , I have appointed a director in EOGM, bt he has nt deposited 1 Lakhs. But Now, I am going to appoint in BM as an additional Director, nw also he has nt deposited 1 lakhs. Is it right? Really, what a confusing section.

[Pracheta]

when a person, not being retiring director is proposed to be appointed as Director at a GM, Rs.1 lakh deposit is required by the person proposing his candidature. Such deposit is not required for appointement at Board meetings.

Best Regards,

CS.Pracheta.M

Practising Company Secretary

Ph: 98446 88622