Appointment of directors to be voted individually (Section 162 of the Companies Act, 2013) :

According to section 162 of the Companies Act, 2013:

(i) Two or more directors of a company cannot be elected as directors by a single resolution.

(ii) Thus, each director shall be appointed by a separate resolution unless the meeting first agreed that the appointment shall be made by a single resolution and no vote has been cast against such agreement.

(iii) A resolution moved in contravention of this provision shall be void, whether or not objection thereto was raised at the time it was so moved.

(iv) A motion for approving a person for appointment, or for nominating a person for appointment as a director, shall be treated as a motion for his appointment.

Non applicability of section 162: The Ministry of Corporate Affairs has clarified via Notifications No. 463(E) and 464(E) dated 5th June, 2015, that section 162 of the Companies Act, 2013, shall not apply to:

(i) 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;

(ii) A subsidiary of a Government company, referred to in (a) above, in which the entire paid up share capital is held by the Governmment company.

(iii) A Private company