Section 163 of Companies Act, 2013 – Option to adopt principle of proportional representation for appointment of directors

  • Updated Till : February 21, 2024

SECTION 163. OPTION TO ADOPT PRINCIPLE OF PROPORTIONAL REPRESENTATION FOR APPOINTMENT OF DIRECTORS

[Effective from 12th September, 2013]

Notwithstanding anything contained in this Act, the articles of a company may provide for the appointment of not less than two-thirds of the total number of the directors of a company in accordance with the principle of proportional representation, whether by the single transferable vote or by a system of cumulative voting or otherwise and such appointments may be made once in every three years and casual vacancies of such directors shall be filled as provided in sub-section (4) of section 161.

EXEMPTIONS

Section 163 shall not apply to:

(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;

(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 vide Notification No. GSR 463(E) dated 5th June, 2015.

The above mentioned exception shall be applicable to a government company which has not committed a default in filing its financial statements under section 137 of the said Act or annual return under section 92 of the said Act with the Registrar, vide amendment notification F. No. 1/2/2014- CL-V dated 13th June 2017. 

2 responses to “Section 163 of Companies Act, 2013 – Option to adopt principle of proportional representation for appointment of directors”

  1. Mike Nathan says:

    Hi corporatelawreporter.com admin, Your posts are always well researched and well written.

  2. I would like to thank you for the efforts
    you have put in writing this blog. I really hope to see the same high-grade blog posts from you later on as
    well. In truth, your creative writing abilities has motivated me to get my very
    own blog now ;)

Leave a Reply

Your email address will not be published. Required fields are marked *

India’s Leading Compliance Software

India’s Leading Compliance Software

Get A Demo Today !

Corporate Law Referencer

Corporate Law Referencer

Corporate Law Referencer

Recent Articles

Recent Legal updates

Recent Gst Updates