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Casual Vacancy and Alternate or Substitute Directors

The document discusses circumstances under which the election of directors may be declared invalid. It states that within 30 days of a director election, members holding 10% or more of voting power can apply to the court to invalidate the election if there was a material irregularity in how the election was held or related matters. The court can invalidate the election of all directors or individual directors under such circumstances. The document also provides details on procedures that must be followed for director elections, such as fixing the number of directors, notice requirements, and voting processes.

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Umer Ahmad
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150 views

Casual Vacancy and Alternate or Substitute Directors

The document discusses circumstances under which the election of directors may be declared invalid. It states that within 30 days of a director election, members holding 10% or more of voting power can apply to the court to invalidate the election if there was a material irregularity in how the election was held or related matters. The court can invalidate the election of all directors or individual directors under such circumstances. The document also provides details on procedures that must be followed for director elections, such as fixing the number of directors, notice requirements, and voting processes.

Uploaded by

Umer Ahmad
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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157. First directors and their term.

—(1) The number of directors and


the names of the first directors shall be determined by the subscribers of the
memorandum and their particulars specified under section 197 shall be submitted
along with the documents for the incorporation of the company.
(2) The number of first directors may be increased by appointing
additional directors by the members in a general meeting. The first directors shall
hold office until the election of directors in the first annual general meeting of the
company.

CASUAL VACANCY AND ALTERNATE OR SUBSTITUTE


DIRECTORS
33. (a) Any casual vacancy occurring among the directors may be filled up
by the directors within thirty days of the vacancy and the person so
appointed shall hold office for the remainder of the term of director
in whose place he is appointed.
(b) An existing director may, with the approval of the board of
directors, appoint an alternate director to act for him during his
absence from Pakistan of not less than ninety days. The alternate
director so appointed shall ipso facto vacate office if and when the
director appointing him returns to Pakistan.
(c) A person shall be eligible for appointment against casual vacancy
or to act as alternate director only if he is a member and is not
already a director of the company.

Under what circumstances the election of directors may be declared invalid.

159. Procedure for election of directors.—(1) Subject to the provision


of section 154, the existing directors of a company shall fix the number of
directors to be elected in the general meeting, not later than thirty-five days
before convening of such meeting and the number of directors so fixed shall not
be changed except with the prior approval of the general meeting in which
election is to be held.
(2) The notice of the meeting at which directors are proposed to be
elected shall among other matters, expressly state—
(a) the number of directors fixed under sub-section (1); and
(b) the names of the retiring directors.
(3) Any member who seeks to contest an election to the office of
director shall, whether he is a retiring director or otherwise, file with the
company, not later than fourteen days before the date of the meeting at which
elections are to be held, a notice of his intention to offer himself for election as a
director:
Provided that any such person may, at any time before the holding of
election, withdraw such notice.
(4) All notices received by the company in pursuance of sub-section (3)
shall be transmitted to the members not later than seven days before the date of
the meeting, in the same manner as provided under this Act for sending of a
notice of general meeting. In the case of a listed company such notice shall be
published in English and Urdu languages at least in one issue each of a daily
newspaper of respective language having wide circulation.

(5) The directors of a company having a share capital shall, unless the
number of persons who offer themselves to be elected is not more than the
number of directors fixed under sub-section (1), be elected by the members of the
company in general meeting in the following manner, namely—
(a) a member shall have such number of votes as is equal to the
product of the number of voting shares or securities held by him
and the number of directors to be elected;
(b) a member may give all his votes to a single candidate or divide
them between more than one of the candidates in such manner as he
may choose; and
(c) the candidate who gets the highest number of votes shall be
declared elected as director and then the candidate who gets the
next highest number of votes shall be so declared and so on until
the total number of directors to be elected has been so elected.
(6) The directors of a company limited by guarantee and not having
share capital shall be elected by members of the company in general meeting in
the manner as provided in articles of association of the company.
160. Powers of the Court to declare election of directors invalid.—
The Court may, on the application of members holding ten percent of the voting
power in the company, made within thirty days of the date of election, declare
election of all directors or any one or more of them invalid if it is satisfied that
there has been material irregularity in the holding of the elections and matters
incidental or relating thereto.

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