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Procedure for appointment of first directors Ø Consent of each of the persons proposed to be named as director in the articles of association, seeking his consent to act as director, shall be obtained in the form of a letter. Ø Consent of the first directors (unless they are named in the articles of association) in Form No.29 prescribed under the Companies (Central Government’s) General Rules &Forms, 1956 shall be filed with the Registrar of Companies [section 264(2)].Ø Form No.32 prescribed under the Companies (Central Government’s) General Rules & Forms, 1956 in duplicate in respect of the first directors shall be filed with the Registrar, in the case of every company. Ø The agreement, if any, which the company proposes to enter into with any individual for appointment as its managing director or whole-time director or manager shall be filed with the Registrar.
In such a case, the subscribers must determine the names before or at the incorporation of the company and give intimation thereof to the Registrar by Form No.
Therefore, a private company is free to provide in its articles the manner of appointment of first directors.
The articles can also provide that the first directors shall continue to hold office until their office becomes vacant by resignation, removal, and death etc.
For each director, a separate resolution should be passed, unless it has first been agreed by a unanimous resolution that two or more directors shall be appointed by a single resolution (section 263).
This meeting can be held on any day before the first annual general meeting.
The above statement can be inferred by reading section 254 of the Companies Act, 1956 which says that in default of and subject to any regulations in the articles of a company, subscribers to the memorandum who are individuals shall be deemed to be the directors of the company, until the directors are duly appointed in accordance with section 255.
The articles may adopt the provisions of Table A (Regulations for Management of a Company Limited by Shares) of Schedule I to the Companies Act, 1956 in the articles of association of the company.
A general notice of the interests under section 299 will also be given in Form No.24 AA prescribed under the Companies (Central Government’s) General Rules & Forms, 1956.
Appointment of first directors at a general meeting A public company and a private company which is a subsidiary of a public company must hold an extra ordinary general meeting before the first annual general meeting and appoint the first directors by passing ordinary resolutions.
It can even be held on the date of the first annual general meeting.
The only condition is that the meeting shall be held before the beginning of the annual general meeting on that date.
Appointment of First Directors of the Company “First directors” mean those directors who hold office from the date of incorporation of the company.