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CA Foundation · Business Laws · The Companies Act, 2013

Kiran Foods Ltd, a public company, has a director who was appointed by the board to fill a casual vacancy caused by the death of a director, whose original term would have ended at the next annual general meeting. Until when can the new director hold office?

A director appointed by the board to fill a casual vacancy holds office only up to the date on which the director whose place he took would have retired or completed his term. He does not receive a fresh term, and the Registrar's approval is not needed.

  1. AOnly until the next board meeting
  2. BUp to the date to which the director in whose place he was appointed would have held officeCorrect
  3. CFor a fresh term of five years from the date of appointment
  4. DUntil the Registrar approves a permanent replacement

Explanation

A casual vacancy in the office of a director may be filled by the board at a meeting, and the person so appointed holds office only up to the date to which the director in whose place he is appointed would have held office. This does not give a fresh five-year term and the Registrar is not involved.

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