Monday 16 September 2013

Sections 162 and 163 of Companies Act 2013.

Section 162.
Appointment of directors to be voted individually

1)       At a general meeting of a company, a motion for the appointment of two or more persons as directors of the company by a single resolution shall not be moved unless a proposal to move such a motion has first been agreed to at the meeting without any vote being cast against it.
2)       A resolution moved in contravention of sub-section (1) shall be void, whether or not any objection was taken when it was moved.
3)       A motion for approving a person for appointment, or for nominating a person for appointment as a director, shall be treated as a motion for his appointment.


Section 163.
Option to adopt principle of proportional representation for appointment of directors.

Notwithstanding anything contained in this Act, the articles of a company may provide for the appointment of not less than two-thirds of the total number of the directors of a company in accordance with the principle of proportional representation, whether by the single transferable vote or by a system of cumulative voting or otherwise and such appointments may be made once in every three years and casual vacancies of such directors shall be filled as provided in sub-section (4) of section 161.


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