Follow my blog with Bloglovin

Restriction of Appointment of Directors According to the Companies Act, the following restrictions have been imposed on the appointment of directors.

Restriction of Appointment of Directors According to the Companies Act, the following restrictions have been imposed on the appointment of directors.

(1) Only a person is a director, only one person can be appointed to the post of director, that is, no amalgamated institution, association or firm can be appointed to the post of director of any public or private company.

(2) Maximum number of director posts: A person cannot become a director or alternate director of more than 20 companies at a time. In case of public companies, he can become the director of only 10 companies. It also includes private companies that are subsidiary or subsidiary companies of a public company.

If a person is the operator of more than 20 companies, he can be fined from ₹ 5,000 to ₹ 25,000 per day in the case of each company after the first 20 companies.

(3) A director who has been in India for 182 days – Every public company must have at least one director who has been in India for a total of 182 days in the previous year. (4) No person can be appointed as a director of the company unless he has consented to act as such and this consent must be sent to the Registrar within 30 days.

(5) Women Operators It is mandatory for low-grade companies to appoint a woman director.

(i) to every listed company within one year of the commencement of the Companies Act, 2013; within the year

(6) Qualification Shares of Operators- If nothing is given in the Articles about qualification shares, then qualification shares may be prescribed for operators and not for some. If a director is required to take qualifying shares as per the Councilor’s Articles, then he has to take these shares within two months of his appointment.

(7) Appointment of Operator Identification Number Holder Every company shall appoint or re-appoint only such person as director who has been allotted a Director Identification Number by the Central Government.

(8) Not to be disqualified for the post of Director- The same person can be appointed as Director, who is not unfit for the post of Director. To assume the post of Director

is ineligible

(i) a minor,

(ii) if the court has found him to be of unsound mind,

(iii) if he is an excluded insolvent,

(iv) if he has made an application for being declared insolvent, (v) if he has been sentenced to six months imprisonment by a court of conviction for any moral turpitude and five years have not yet elapsed since that incident.

(vi) If he has not paid in respect of his shares within six months from the last date of payment of the call (vii) if he has not been paid till after he has been appointed to the post of director by the Court on the ground of fraudulent practice. disqualified for being.

 

(9) Person holding an office of profit No officer, employee or other person of the company holding an office of profit in the company can be appointed as a director. Yes, such appointment can be made if a special resolution is passed in the general general meeting of the company.

(10) Notice in the office of the company Any person (other than a retiring director) who wishes to become a candidate for the post of director of the company, either himself or through his authorized representative, shall attend the general meeting of the company. It is necessary to submit the information of your candidature to the company’s office at least 14 days in advance. If any person does not give such notice in due time, then that person cannot be appointed to the post of Director.

Leave a Comment