Companies Act

Save Share

This query is : Resolved

Kunal (Querist)
Follow

17 September 2009 Lets assume a situation where a shareholders resolution by which he was appointed states that 'his appointment is valid for a period of 2 years from the date of appointed', then please clarify what would be the date of retirement of such directors. Is it the date of completion of 2 years or the date of next meeting. The company in this case is a private company and the articles are silent regarding rotation of directors.

Ankur Garg

Ankur Garg (Expert)
Follow

17 September 2009 Hi,

Kindly appreciate provisions related to retirement of director by rotation u/s 255 are not applicable to a director of pvt. company.

Hence a director of pvt. company can continue his directorship for any number of years. There is no need to pass such resolution as mentioned by you.

In case of any doubt please revert.

Regards

SUBRAMONY V

SUBRAMONY V (Expert)
Follow

17 September 2009 I think in this case the appointment was only for two year and the concerned director needs to be reappointed after 2 years.

However on such reappointment if you do not specify any period he can continue in his directorship as the retirement by rotation is not be applicable to pvt cos unless specifically stated in Articles

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