Section 160 of the Companies Act, 2013
Section 160 of the Companies Act, 2013 deals with the Right of persons other than retiring directors to stand for directorship.
📜 Section 160 – Right of persons other than retiring directors to stand for directorship
This section allows a person who is not a retiring director to stand for election as a director at a general meeting, subject to certain conditions.
🔹 Key Provisions:
Notice Requirement:
A person (other than a retiring director) who wishes to be appointed as a director must:
Leave a notice in writing, signed by the candidate (or the member proposing him), at the registered office of the company.
The notice must be submitted at least 14 days before the meeting.
Deposit of ₹1,00,000:
Along with the notice, a deposit of ₹1,00,000 must be made.
This amount is refunded if:
The candidate gets elected as a director, or
The candidate gets more than 25% of the valid votes cast (either on show of hands or electronically).
Company’s Obligation:
The company must inform members of the candidature at least 7 days before the meeting, either:
By serving individual notices, or
By publishing on the website or in newspapers (if individual notice is not feasible).
❗ Exceptions (as per Rules):
No deposit is required:
If the person is nominated by the Nomination and Remuneration Committee (where applicable).
If nominated by the Board of Directors of the company.
✅ Objective of Section 160:
To ensure transparency and fairness in the appointment of directors and prevent frivolous candidatures.
RELATED Blog
0 comments