Section 162 The Companies Act, 2013

Section 162 The Companies Act, 2013

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.]

Exceptions/ Modifications/ Adaptations

1. In case of private company – section 162 shall not apply – Notification dated 5th june, 2015.

2. In case of Government Company – section 162 shall not apply to :-

(a) a Government Company in which the entire paid up share capital is held by the Central Government, or by any State Government or Governments or by the Central Government and one or more State Governments;

(b) a subsidiary of a Government company, referred to in (a) above, in which the entire paid up share capital is held by that Government company. – Notification dated 5th june, 2015.

3. In case of Specified IFSC Public Company – section 162 shall not apply. – Notification Dated 4th January, 2017.