CS Executive · Company Law and Practice · Directors
Meera, Karan and Divya are the individual subscribers to the memorandum of Lotus Textiles Ltd, a newly incorporated public company. Its articles contain no provision about who the first directors are. Who are the first directors of the company?
The individual subscribers to the memorandum, Meera, Karan and Divya, are deemed to be the first directors. Where the articles are silent on first directors, the Act treats them as directors until directors are duly appointed in the usual way.
- AMeera, Karan and Divya, deemed to be the first directors until directors are duly appointedCorrect
- BNo one, until the Registrar nominates directors
- COnly the person who signs the declaration of compliance
- DPersons appointed by the Central Government within thirty days
Explanation
Under section 152(1), where the articles make no provision for the first director, the subscribers to the memorandum who are individuals are deemed to be the first directors until directors are duly appointed. The Registrar and Central Government have no such role, and the declaration signatory is not given that status.
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