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A company’s board appoints an additional director under section 161(1) of the Companies Act, 2013. Unless the director vacates office sooner, until when does the director hold office?

Question and options

A company’s board appoints an additional director under section 161(1) of the Companies Act, 2013. Unless the director vacates office sooner, until when does the director hold office?

  1. Up to the date on which the director in whose place the appointment was made would have retired

  2. Up to the next annual general meeting, or the last date by which it should be held, whichever comes first

  3. Up to the next general meeting of any kind, or six months from appointment, whichever comes first

  4. Up to the end of the financial year in which the appointment was made, or the next board meeting after it

Answer and explanation

Correct answer: B - Up to the next annual general meeting, or the last date by which it should be held, whichever comes first

Section 161(1) of the Companies Act, 2013 lets an additional director hold office up to the date of the next annual general meeting or the last date on which it should have been held, whichever is earlier. Holding office until the date on which the original director would have retired is the rule for a director filling a casual vacancy under section 161(4).

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