Co Law

This query is : Resolved

DIPTI (Querist)
Follow

08 September 2009 Where a new company is being incorporated-Is is possible to have protection rights to initial promoter for e.g. Chairman / Director for life. etc.?
(Since the chairman is appointed every 5 years)

Ankur Garg

Ankur Garg (Expert)
Follow

08 September 2009 Hi Dipti,

If your company is a private Company then provisions relating to retirement of director by rotation are not applicable.

However in case of a public company then provisions relating to retirement of director by rotation are applicable as desired by section 255 and 256.

But as per section 255 and 256 a director retire rotationally and he/she is eligible for re-appointment. So in this way you may continue their directorship.

Revert if there is any doubt.

Regards

DIPTI

DIPTI (Querist)
Follow

09 September 2009 It is Pvt Co.

U mean So if he is appointed as chairman once , Retirement & reappointment of that same person will not be required and thus he will continue to be the chairman for the lifetime.????????

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now