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CA Foundation · Business Laws · The Companies Act, 2013

Gaurav was appointed as an additional director of Pinnacle Infra Ltd by its Board under the articles. The company's next annual general meeting is held on 30 September. Until when can Gaurav hold office as an additional director?

Gaurav can hold office only up to the date of the next annual general meeting or the last date by which it should have been held, whichever is earlier. After that the shareholders must appoint him as a regular director if he is to continue.

  1. AUp to the date of the next annual general meeting, or the last date on which it should have been held, whichever is earlierCorrect
  2. BFor a fixed term of one year from the date of appointment
  3. CUntil the end of the financial year in which he was appointed
  4. DUp to the date of the next AGM, even if it is held after the last date allowed for holding it

Explanation

An additional director holds office only up to the date of the next annual general meeting or the last date on which that meeting should have been held, whichever is earlier. After that, the shareholders must appoint him as a regular director if he is to continue. The fixed one-year term and financial year end have no basis in the Act.

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