Section 160: Right of persons other than retiring directors to stand for directorship
This section allows people who are not current directors to stand for election as a director at a general meeting, subject to certain notice and deposit requirements.
The section, clause by clause
What the section says
In plain terms
(1)A person who is not a retiring director in terms of section 152 shall, subject to the provisions of this Act, be eligible for appointment to the office of a director at any general meeting, if he, or some member intending to propose him as a director, has, not less than fourteen days before the meeting, left at the registered office of the company, a notice in writing under his hand signifying his candidature as a director or, as the case may be, the intention of such member to propose him as a candidate for that office, along with the deposit of one lakh rupees or such higher amount as may be prescribed which shall be refunded to such person or, as the case may be, to the member, if the person proposed gets elected as a director or gets more than twenty-five per cent. of total valid votes cast either on show of hands or on poll on such resolution.
A person who is not a retiring director can be appointed as a director at a general meeting if they or a proposing member give the company 14 days written notice and pay a deposit of one lakh rupees, which will be refunded if the person gets elected or receives more than 25 per cent of the total valid votes.
proviso2[Provided that requirements of deposit of amount shall not apply in case of appointment of an independent director or a director recommended by the Nomination and Remuneration Committee, if any, constituted under sub-section (1) of section 178 or a director recommended by the Board of Directors of the Company, in the case of a company not required to constitute Nomination and Remuneration Committee.]
(2)The company shall inform its members of the candidature of a person for the office of director under sub-section (1) in such manner as may be prescribed.
The company must inform its members about the person's candidacy for director in a prescribed manner.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 1. Subs. by Act 22 of 2019, s. 25, for section 159 (w.e.f. 2-11-2018).
- 2. The proviso ins. by Act 1 of 2018, s. 50 (w.e.f. 9-2-2018).
- 3. Ins. by Act 1 of 2018, s. 51 (w.e.f. 9-2-2018).
- 4. The words “In the case of a public company,” omitted by s. 51, ibid. (w.e.f. 9-2-2018).
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Referred to by
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.