Additional directors are to be included in total number of directors or not. Are they liable to retire by rotation?
vaibhav m
(17 Points)
Replied 22 April 2017
Sudhir Todkar
(CS Professional)
(1021 Points)
Replied 22 April 2017
Sudhir Todkar
(CS Professional)
(1021 Points)
Replied 22 April 2017
Ravi Kiran Vustela
(Knowledge Seeker)
(1353 Points)
Replied 22 April 2017
Indira
(CA )
(1379 Points)
Replied 23 April 2017
I also came across the same answer in one of the famous corporate law books add posted by Ravi. Also a small shareholder can also be considered for total number of directors as per that book as section 161 doesn't override section 152(6). Is it correct? Thanks Indira
Sudhir Todkar
(CS Professional)
(1021 Points)
Replied 23 April 2017
Jatin Bajaj
(CS)
(2928 Points)
Replied 24 April 2017
aDDITIONAL dIRECTORS ARE INCLUDED IN THE TOTAL NO OF dIRECTORS. iF THE MINIMUM STREGNTH OF THE DIRECTORS FALL BELOW THE STATUTORY LIMIT, COMPANY MAY APPOINT ADDITIONAL DIRECTORS. SUCH ADDITIONAL DIRECTORS SHALL HOLD THE OFFICE TILL UPCOMING AGM . AT AGM EITHER SUCH DIRECTOR WOULD RESIGN OR REGULARIZE AT AGM.
AS PER SECTION 152(6)- ADITIONAL DIRECTORS ARE LIABLE TO RETIRE BY ROTATION, BUT AS PER THE PROVISIONS THE DIRECTORS WHO ARE LONGEST IN THE OFFICE AS DIRECTOR WILL HAVE TO VACCATE FIRST BUT ADDITIONAL DIRECTOR HOLDS THE OFFICE TILL UPCOMING AGM AS PER SECTION 161(1)
Sudhir Todkar
(CS Professional)
(1021 Points)
Replied 24 April 2017
Indira
(CA )
(1379 Points)
Replied 24 April 2017
Sudhir even i had the same opinion but the book iam following for my CA final says otherwise that they have to be included in calculation of total number of directors for rotation.
Thats why i had this confusion.
Sudhir Todkar
(CS Professional)
(1021 Points)
Replied 24 April 2017
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