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Notice of Candidature of a Person for Directorship Section 160

Reference

• Section 160 of the Companies Act, 2013
• Rule 13 of the Companies (Appointment and Qualifications of Directors) Rules, 2014


Requirement of Notice and Deposit

• For whom notice is required?

A person, who is not a retiring director (section 152), is eligible for appointment as a director at a general meeting.

• Who has to serve the notice of candidature for directorship?

Either the director himself or any other member of the company.

• When and where the notice has to be served?

A duly signed notice in writing has to be submitted at the registered office of the company not less than 14 days before the general meeting.

• What is the deposit amount to be paid along with the notice?

Notice has to be submitted along with a deposit of Rs. 1 lakh or such higher amount as may be prescribed.

• Is the deposit refundable?

The deposit is refundable only if the proposed person gets elected as a director or gets more than 25% of total valid votes cast either on a show of hands or on poll on such resolution.

• Deposit not required

The deposit amount is not required to be submitted along with the notice in case of:
. appointment of an independent director; or 
. appointment of a director as recommended by the Nomination and Remuneration Committee; or
. appointment of a director as recommended by the Board of Directors, if there is no Nomination and Remuneration Committee.


FORMAT OF NOTICE UNDER SECTION 160 OF THE COMPANIES ACT, 2013 FOR PROPOSING THE CANDIDATURE OF A PERSON AS DIRECTOR OF THE COMPANY

1. In case a person proposing his candidature for getting appointed as a Director

Date: .....................

From
(Name of the Person)
(Address)

To
The Board of Directors
(Name of the Company)
(Address)

Subj.: Notice under Section 160 of the Companies Act, 2013

Dear Sirs/Madams,

I, Mr./Ms. ...................., do hereby give notice under Section 160 of the Companies Act, 2013, signifying my intention to propose my candidature for the office of Director of (Name of the Company) in the ensuing ...th Annual General Meeting of the company or any adjournment thereof.

I am hereby forwarding a cheque / demand draft bearing no. ............... dated .............. for a sum of Rs. 100,000/- being the deposit as required. The same is enclosed along with this notice.

Kindly acknowledge the receipt and do the needful.

Thanking you,
Yours faithfully,

  (signature)
(Name of the Person)

Encl.: As above

...............................................

2. In case a member of the company proposes the candidature a person for directorship

Date: ..................

From
(Name of the Member)
Folio No. / DP ID / Client ID .................
(Address)

To
The Board of Directors
(Name of the Company)
(Address)

Dear Sirs/Madams,

Subj.: Notice under Section 160 of the Companies Act, 2013

I, Mr./Ms. ........................, holding ................. equity shares of Rs. .... each fully paid-up in the company, do hereby give notice under Section 160 of the Companies Act, 2013, signifying my intention to propose the candidature of Mr./ Ms. ................... for the office of Director of ............. Limited in the ensuing ...th Annual General Meeting of the company or any adjournment thereof.

I am hereby enclosing a demand draft / cheque no. ............... dated ............. for Rs. 100,000 being the deposit as required under section 160.

Kindly acknowledge the receipt and do the needful as necessary.

Thanking you,
Yours sincerely,

  (signature)
(Name of the Member)
Member

Encl.: A/a

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