An Additional Director appointed by the Board of Directors shall continue to hold the office upto the due date of the next

The correct answer is - Annual General Meeting

Key Points

• Annual General Meeting
  • An Additional Director appointed by the Board of Directors holds office until the next Annual General Meeting (AGM).
  • This rule ensures that shareholders have the opportunity to confirm the appointment of the Additional Director.
  • It aligns with corporate governance principles, allowing shareholders to have a say in the composition of the Board.

Additional Information

• Annual General Meeting (AGM)
  • AGM is a mandatory yearly gathering of a company's interested shareholders.
  • At the AGM, the directors of the company present an annual report containing information for shareholders about the company's performance and strategy.
  • Shareholders can ask questions about the company's performance and prospects.
  • Key decisions, such as the appointment of directors and auditors, are made at the AGM.
• Role of Additional Directors
  • An Additional Director is appointed by the Board to fill a vacancy or to bring in additional expertise.
  • Their appointment is temporary and subject to confirmation at the next AGM.
  • They have the same responsibilities and powers as other directors during their tenure.
• Corporate Governance
  • Corporate governance involves a set of rules, practices, and processes by which a company is directed and controlled.It ensures accountability, fairness, and transparency in a company's relationship with its stakeholders.
  • Effective corporate governance provides a framework that ensures the company operates in the best interests of all stakeholders.