[Notification Date: 26.03.2014; Effective from: 01.04.2014]
[Section 160 shall apply to the unlisted public company which is licensed to operate by the Reserve Bank of India or the Securities and Exchange Board of India or the Insurance Regulatory and Development Authority of India from the International Financial Services Centre located in an approved multi services Special Economic Zone set-up under the Special Economic Zones Act, 2005 (28 of 2005) read with the Special Economic Zones Rules, 2006 as per the articles framed by the Company -Notification G.S.R. 08(E) dated 04.01.2017]
Section 160- Right of persons other than retiring directors to stand for directorship. [Corresponds to Section 257 of the Companies Act, 1956]; [Relevant Rule: 13 of The Companies (Appointment and Qualification of Directors) Rules, 2014]
(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.
In Subsection (1), for the words "one lakh rupees", the words "ten thousand rupees" shall be substituted in respect of Nidhi - Notification F. No. 2 /11/2014-CL.V dated 05.06.2015.
(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 - [Rule 13].
Section 160 shall not apply to :-
- Section 8 companies whose articles provide for election of directors by ballot, -Notification F. No. 1 /2/2014-CL.I dated 05.06.2015.
-(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- Notification F No 1/2/2014-CL.V dated 05.06.2015
-(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 F No 1/2/2014-CL.V dated 05.06.2015
- a private company- Notification F No 1/ 1/2014- CL.V dated 05.06.2015