ALTERNATE DIRECTOR

Authority who appoint alternate director:

                                                                           Sub-section 2 of section 161 of company’s act 2013 has empowered the board of directors to appoint alternate director, provided it must be authorized by the article or a resolution has been passed by the company in general meeting.

Condition for appointment of alternate director:

ð  The person in whose place the alternate director is being appointed should be absent for a period of not less than 3 months from India.

ð  He must not be appointed as an alternate director of any other director in the company.

ð  When alternate director is appointed in the place of independent director such alternate director also satisfy the criteria of independent director.

ð  If the term of office of the original director is determined before he so returned to India, any provision for the automatic re-appointment of retiring directors in default of another appointment shall apply to the original and not to the alternate director.

Term of office of alternate director:

ð  An alternate director shall hold office for a period as assigned to original director and shall vacate the office if and when the original director returns to India.

       

       Here, in whose place alternate director is appointed is known as original director.