1,2,4,&5[160. (1) A person who is not a retiring director in terms of section 152 shall, subject to the provisions of this Act, be eligible for appointment to the office of a director at any general
meeting, if he, or some member intending to propose him as a director, has, not less than fourteen days before the meeting, left at the registered office of the company, a notice in writing under his hand signifying his candidature as a director or, as the case may be, the intention of such member to propose him as a candidate for that office, along with the deposit of 3[one lakh rupees] or such higher amount as may be prescribed which shall be refunded to such person or, as the case may be, to the member, if the person proposed gets elected as a director or gets more than twenty-five per cent. of total valid votes cast either on show of hands or on poll on such resolution.
*6[Provided that requirements of deposit of amount shall not apply in case of appointment of an independent director or a director recommended by the Nomination and Remuneration Committee, if any, constituted under sub-section (1) of section 178 or a director recommended by the Board of Directors of the Company, in the case of a company not required to constitute Nomination and Remuneration Committee.]
(2) The company shall inform its members of the candidature of a person for the office of director under sub-section (1) in such manner as may be prescribed.]
Exceptions/ Modifications/ Adaptations
1. In case of private company – Section 160 shall not apply – Notification Dated 5th june, 2015.
2. In case of Section 8 company – Section 160 shall not apply to companies whose articles provide for election of directors by ballot. – Notification Dated 5th june, 2015..
3. In case of nidhi company, in sub-section (1) of Section 160, for the words “one lakh rupees”, the words “ten thousand rupees” shall be substituted. – Notification Dated 5th june, 2015.
4.In case of Government Company – Section 160 shall not apply to :-
(a) a Government Company in which the entire paid up share capital is held by the Central Government, or by any State Government or Governments or by the Central Government and one or more State Governments;
(b) a subsidiary of a Government company, referred to in (a) above, in which the entire paid up share capital is held by that Government company. – Notification Dated 5th june, 2015.
5. In case of Specified IFSC Public Company – Section 160 shall apply as per the articles framed by the company. – Notification Dated 4th January 2017.
Note :
Section 160 Discretionary Power of Board of Section 8 company – Clarification Dated 14th October, 2014.
* Proviso of sub section (1) has been notified on 9th February 2018 |
Leave A Comment
You must be logged in to post a comment.