18. Hasmukh Limited, incorporated under the Companies Act, 2013 have a whole-Time Director (WTD) Mr. Ram who has been re-appointed in the Annual General Meeting (AGM) held on 28th August 2019. Mr. Ram has served as WTD of the company for nearly 4 years and his tenure of office would expire on 24th December 2020. Further, the Company's upcoming AGM is scheduled to take place on 25th October 2019. In the said AGM, Mr. Ram has been re-appointed as the WTD for his last tenure. You are required to comment about the validity of the reappointment of Mr. Ram by the company?

(a) The re-appointment of Mr. Ram is valid in law as re-appointment can be made for a period not exceeding 5 years at a time provided the articles of the company provides for such appointment before one year to the expiry of his term.

(b) The re-appointment of Mr. Ram is invalid in law as re-appointment cannot be made earlier than one year before the expiry of his term.

(c) The re-appointment of Mr. Ram is valid in law provided the resolution for the appointment has been passed with the consent of all the Directors present at the Board Meeting for approving the appointment at the AGM.

(d) The re-appointment of Mr. Ram is invalid in law as no special resolution for re-appointment has been passed at the AGM for approving the same.
























Ans:(b) The re-appointment of Mr. Ram is invalid in law as re-appointment cannot be made earlier than one year before the expiry of his term.

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