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Case Note:
Companies Act, 1956 - Section 260 - Additional Directors - Term of - Holds
office only upto the last date of the next annual general meeting of the
Company - Not to the date of actual holding of the next annual general
meeting of the Company.
Held:
The first proviso to Section 260 provides that additional director shall hold office only
upto the date of next annual general meeting. That means additional director of the
Company shall cease to he director of the Company after the last date on which the
annual meeting of the Company should have been held under the Companies Act. In
other words, the co-option of additional director in terms of first proviso of Section 260
unless reappointed can only be upto the last date of the next annual general meeting
that should have been held. The words "shall hold office only upto the date of next
annual general meeting" occurring in first proviso to Section 260 mean that such
director shall hold office upto the last date of next annual general meeting which should
have been held and not actual holding of next annual general meeting if it is beyond the
statutory period for holding of such annual general meeting to be held.
JUDGMENT
R.M. Lodha, J.
1. Rule, Returnable forthwith.
2 . Mrs. Shakuntala Joshi, advocate waives service for first respondent. Mrs. U. V.
Kejriwal, A.P.P., waives service for respondent No. 2.
3. By consent of the learned counsel for the parties, the criminal writ petition is being