At the ensuing AGM of Quotient Ltd, Sriram wants to stand for directorship in the Company, even though he is not a retiring director of the company. His candidature is recommended by the Board of Directors. The Company i

As per Section 160 of the Companies Act, 2013, a person, who is not a retiring director, may be proposed as a candidate for directorship of the company, either by himself or by any other member of the company, through a proper notice in writing at least 14 days before the ensuing AGM. The candidate is required to deposit a sum of ₹1 lakh with the Company which shall be refunded to such person or the member as the case may be, if such person gets elected as a director or gets more than 25% of the total valid votes cast either on show of hands or on poll on such resolution. The section also exempts from the requirement of making a deposit of ₹1 lakh if the Candidature is recommended by the Board of Directors of the company in case the company is not required to constitute a Nomination and Remuneration Committee. Thus, Sriram can get his appointment recommended by the Board of Directors of Quotient Ltd for his candidature to the office of directorship at the ensuing AGM and seek appointment as a director without making any deposit of ₹1 lakh. He has to ensure that a notice proposing his candidature is left at the Company either by himself or by any member of the company at least 14 days before the ensuing AGM.