Appointment of Director-pvt co

[sunil jain]

As per section 160 of Companies Act, 2013, 'a person who is not a retiring director in terms of sec 152 shall......be eligible for appointment.................if a notice in writing.... along with deposit of 1 lac'

The query is whether this clause of 1 lac would apply for appointment of director in AGM who was earlier appointed as additional director appointed u/s 161 in a pvt. co.

Thanks,

CA. R.K. Aggarwal

[DR.MARIAPPAN GOVINDARAJAN]

Dear Sir,

According to Section 161(1) the additional director shall hold office up to the date of the next annual general meeting. Section 160  provides for the right of persons other than retiring directors to stand for directorship. The additional director is not a retiring director. In my opinion if the additional director wants to stands for directorship the provisions of Section 160(1) will apply.

Regards,

M. Govindarajan

AI Summary

Eligibility to stand for directorship: deposit requirement under section 160 applies to additional directors seeking appointment at the AGM. An additional director is not a retiring director, and therefore the procedural prerequisites of Section 160-including the requirement that a person other than a retiring director give notice in writing and satisfy the prescribed deposit condition-apply when the additional director seeks election at the AGM.