9911796707
TMI Blog2013 (10) TMI 894X X X X Extracts X X X X X X X X Extracts X X X X ..... er was co-opted by the Directors of the Company (Fund of Thanjavur Limited) on 26.8.1996 as an additional director in a metting of the Board of Directors of the said Company and thereafter he was not appointed as a regular Director; that even before the convening of the next Annual General Meeting he had resigned the Additional Directorship on 17.8.1997 itself; that now the respondent proposes to prosecute the petitioner herein along with the Company and the Directors for the default committed by the Company in filing the Balance Sheet the Profit and Loss Account for the financial year ended on 31.3.2008 long after he ceased to be an Additional Director of the Company concerned and that hence the petitioner should be relieved from the propo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l directors: Provided that such additional directors shall hold office only up to the date of the next annual general meeting of the company: Provided further that the number of the directors and additional directors together shall not exceed the maximum strength fixed for the Board by the articles". 5. A bare reading of the said Section will show that the Board of Directors have conferred that such powers of the Articles can appoint Additional Directors subject to a limitation that such Additional Directors appointed by the Board of Directors shall hold office only up to the date of the next Annual General Meeting of the Company. The tenure of Additional Director by operation of law comes to an end by the date on which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held responsible for any of the defaults committed by the Company or by the Directors of the Company. If at all, the respondent chooses to make him responsible for any lapse or default committed by the Company or its Directors before the petitioner ceased to be an Additional Director, then the respondent shall be wholly justified in doing so. On the other hand, the petitioner having ceased to be an Additional Director by operation of law cannot be held responsible for any of the acts or omissions of the Company subsequent to the date from which he ceased to be an Additional Director. It is also obvious from the records that for the show cause notice the petitioner has issued a suitable reply stating that he should not be held responsible fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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