History-Snapshot

Saturday, March 16, 2013

Applicability of 257 for regularising additional directors appointment


Ramaiyya, 3351 page:- Department Clarification: The Department is of the view that if a person who is appointed as an additional director wants to be electd as a director at the next annual general meeting, the provisions of of section 257 will have to be complied with since he cannot be considered to be a Director retiring by rotation at that meeting.(letter No.8/3(270)/63-PR, dated 27-7-196); Company news and notes 1st July 1963.

Moreover, section 260 of companies act, does not specifically exclude 257.

It can be construed that 257 will apply to a public company when additional directors appointment is regularized.

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