The Tribunal does not have power to direct appointment of someone as a director of a company as it is the prerogative of the shareholders in their annual general meeting – Subrata Ghosh Vs. Mitra & Ghosh Publishers Ltd. and Ors. – NCLT Kolkata Bench
The petitioner has been contending that he may be appointed as a director of the company being 35% (approx..) shareholder of the company, however, the board of directors of the company have chosen not to induct him in the board. It is also a fact that the petitioner has crossed the age of 70 and consequently, his appointment is governed by Section 196(3) of the Companies Act, 2013 as he is seeking full-time employment with company as a director.
Hon’ble NCLT Kolkata Bench held that the petitioner will not be able to muster the strength requiring for passing of special resolution as he is holding only 35% (approx..) shares in the company. This Tribunal does not have power to direct appointment of someone as a director of a company as it is the prerogative of the shareholders in their annual general meeting.
