"A" Ltd., a public company wants to appoint Alternate Directors. Examine the validity of acts of the company with reference to provisions of Companies Act, 2013 in following cases: 'D' a director was absent for a period
CS Executive · Company Law · PYQS · June 2019
"A" Ltd., a public company wants to appoint Alternate Directors. Examine the validity of acts of the company with reference to provisions of Companies Act, 2013 in following cases: 'D' a director was absent for a period of two and half months. It is proposed to appoint an alternate director.
Answer & Explanation:
Section 161(2) of the Companies Act 2013 empowers the Board, if so authorized by its articles or by a resolution passed by the company in general meeting, to appoint a director (termed as 'alternate director') to act in the absence of an original director during his absence for a period of not less than three months from India. Since 'D' is absent only for two and half months, an Alternate director in place of 'D' cannot be appointed.
Topics: Directors
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