Appointment of person other than retiring director - Companies Law - Circular : No. 5,

Circular : No. 5, dated 15 9 1989. Subject:- Appointment of person other than retiring directo In terms of section 257, as amended by the Companies (Amendment) Act, 1988, a person other than a retiring director proposing himself as a director, or any member proposing him for directorship, has to deposit with the company concerned a sum of Rs. 500 which shall be refunded to such person or member in the event the person concerned succeeds in getting elected as a director of the company. Conversely, in case such a person is not elected as a director, he or the member as the case may be, it may be clarified, will not be entitled to the refund of Rs. 500 and the amount deposited shall stand forfeited by the company.