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CS Executive · Company Law and Practice · Directors

Mr. Kapoor is appointed a director of Vihaan Ltd in a general meeting. He has a DIN and has given the declaration that he is not disqualified. He has not yet given consent to hold office and nothing has been filed with the Registrar. What is the position?

Mr. Kapoor cannot act as a director until he gives his consent to hold the office. The consent has to be filed with the Registrar within thirty days of his appointment. Having a DIN and a non-disqualification declaration does not remove this requirement.

  1. AHe may act as a director, as the DIN and declaration are enough
  2. BHe may act as a director for thirty days and then must file consent
  3. CHe cannot act as director unless he gives his consent to hold office, and the consent must be filed with the Registrar within thirty days of appointmentCorrect
  4. DHe may act only after the next annual general meeting ratifies the appointment

Explanation

Section 152(5) says a person appointed as director shall not act unless he gives consent to hold office, and such consent must be filed with the Registrar within thirty days of appointment. DIN and declaration alone do not suffice.

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