Anil, a shareholder holding 9% equity shares of the company, who is not holding any directorship wants to stand for directorship in Pritam Ltd. in its next annual general meeting. State the procedure for appointment of A

CS Executive · Company Law · PYQS · December 2018
Anil, a shareholder holding 9% equity shares of the company, who is not holding any directorship wants to stand for directorship in Pritam Ltd. in its next annual general meeting. State the procedure for appointment of Anil as per the provisions of the Companies Act, 2013.

Answer & Explanation:

In case Mr. Anil not a retiring director in the company is desirous of standing for directorship of the Pritam Ltd., in pursuance of section 160 of the Companies Act, 2013 the following procedure needs to be followed: The proposed director or some member intending to propose him as a director, has, not less than fourteen days before the general 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 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. The company shall, at least seven days before the general meeting, inform its members of the candidature of a person for the office of a director or the intention of a member to propose such person as a candidate for that office- by serving individual notices, on the members through electronic mode to such members who have provided their email addresses to the company for communication purposes, and in writing to all other members; and by placing notice of such candidature or intention on the website of the company, if any; or Publishing the same in vernacular newspaper seven days before the meeting. The candidate may obtain Director Identification Number (DIN) and give his consent in DIR-2. If the candidate is elected the company shall file DIR-12.

Topics: Directors

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