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CS Executive · Company Law and Practice · Directors

All the directors of Himalaya Agro Ltd resign from office on the same day, and no director remains. Under section 168(3), who appoints the required number of directors, and until when do they hold office?

The promoter appoints the required directors or, in his absence, the Central Government does. They hold office only until directors are appointed by the company in general meeting. This is the rule in section 168(3) where all directors resign or vacate office under section 167.

  1. AThe Registrar, until the next Board meeting
  2. BThe promoter or, in his absence, the Central Government; until directors are appointed by the company in general meetingCorrect
  3. CThe Tribunal, until the company's next annual general meeting
  4. DThe company secretary, until the Board is reconstituted by the Central Government

Explanation

Section 168(3) provides that where all directors resign or vacate office under section 167, the promoter or, in his absence, the Central Government appoints the required number of directors. They hold office till directors are appointed by the company in general meeting. The Registrar, Tribunal and company secretary have no such role here.

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