Companies Act, 1956
Sec 257 - Right of persons other than retiring directors
to stand for directorship.
(1) A person who is not a retiring director
shall, subject to the provisions of this Act, be eligible for appointment to
the office of director at any general meeting, if he or some member intending
to propose him has, not less than fourteen days before the meeting, left at the
office of the company a notice in writing under his hand signifying his
candidature for the office of director or the intention of such member to
propose him as a candidate for that office, as the case may be, along with a
deposit of five hundred rupees which shall be refunded to such person or, as
the case may be, to such member, if the person succeeds in getting elected as a
director.
(1A) The company shall inform its members of
the candidature of a person for the office of director or the intention of a
member to propose such person as a candidate for that office, by serving
individual notices on the members not less than seven days before the meeting :
Provided that it shall not be necessary for the
company to serve individual notices upon the members as aforesaid if the
company advertises such candidature or intention not less than seven days
before the meeting in at least two newspapers circulating in the place where
the registered office of the company is located, of which one is published in
the English language and the other in the regional language of that place.
(2) Sub-section (1) shall not apply to a
private company, unless it is a subsidiary of a public company.