Newly incorporated Abhay Limited has not mentioned names of first directors of the company in the Articles of Association. Referring to the provisions of the Companies Act, 2013, advise the Board of Directors regarding t
CS Executive · Company Law · PYQS · June 2017
Newly incorporated Abhay Limited has not mentioned names of first directors of the company in the Articles of Association. Referring to the provisions of the Companies Act, 2013, advise the Board of Directors regarding the appointment of first directors of the company. What would by your answer in case the company is a One Person Company? Also state whether provisions of the Act are applicable to a Private Limited Company.
Answer & Explanation:
First directors of the companies are generally named in the articles of the company. Regulation 60 of Table F provides that the number of directors and the names of the first directors shall be determined in writing by the subscribers of the memorandum or a majority of them. If they are not so named in the articles of a company, then subscribers to the memorandum who are individuals shall be deemed to be the first directors of the company until the directors are duly appointed. In case of a One Person Company, an individual being a member shall be duly deemed to be the company's first director until the director(s) are duly appointed by the members in accordance with the provisions of section 152 of the Companies Act, 2013. Section 152(1) of the Act is applicable to all companies, whether public or private.
Topics: Company Law
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