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CS Executive · Company Law and Practice · Directors

All the directors of Sundaram Engineering Pvt Ltd vacate office on incurring disqualifications under section 167(1). Who first appoints the required number of directors under the Act?

The promoter appoints the required directors, or the Central Government does so if the promoter is absent. Under section 167(3), they hold office only until the company appoints directors in general meeting.

  1. AThe promoter or, in his absence, the Central Government, to hold office until the company appoints directors in general meetingCorrect
  2. BThe Registrar of Companies, for a term of one year
  3. CThe company's auditors, until the next annual general meeting
  4. DThe Tribunal, only on application by a member

Explanation

Section 167(3) provides that where all directors vacate office, the promoter or, in his absence, the Central Government appoints the required number of directors. They hold office until directors are appointed by the company in general meeting. The Registrar and auditors have no such power.

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