Should appointment of directors to be voted individually What is option to adopt principle of proportional representation for appointment of directors Section 162 and 163 of Indian Companies Act 2013

Appointment of directors to be voted individually and Option to adopt principle of proportional representation for appointment of directors  are defined under Section 162 and 163 of Indian Companies Act 2013. Provisions under these sections are:

Section 162 of Indian Companies Act 2013 "Appointment of directors to be voted individually"


 

(1) At a general meeting of a company, a motion for the appointment of two or more persons as directors of the company by a single resolution shall not be moved unless a proposal to move such a motion has first been agreed to at the meeting without any vote being cast against it.

(2) A resolution moved in contravention of sub-section (1) shall be void, whether or not any objection was taken when it was moved.

(3) A motion for approving a person for appointment, or for nominating a person for appointment as a director, shall be treated as a motion for his appointment.

Section 163 of Indian Companies Act 2013 "Option to adopt principle of proportional representation for appointment of directors"

Notwithstanding anything contained in this Act, the articles of a company may provide for the appointment of not less than two-thirds of the total number of the directors of a company in accordance with the principle of proportional representation, whether by the single transferable vote or by a system of cumulative voting or otherwise and such appointments may be made once in every three years and casual vacancies of such directors shall be filled as provided in sub-section (4) of section 161.

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