Corporate Law - Directors appointment

This query is : Resolved

Sanjay (Querist)
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25 September 2008 What is the term of office of a director retiring by rotation. Assuming that a director is appointed at an AGM, does he remain a director upto the end of the AGM (based on 2/3rd majority provision etc.). Auditors appointment specifically states that the appointment is valid upto the end of the next AGM, but similar provision is not available in the Companies Act for director's appointment.

Can someone clarify.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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26 September 2008 Not less than two-thirds of the total strength is liable to retire by rotation in AGM.

Out of the two-thirds, not less than one third will have to retire in each AGM. The person(s) to retire so will be the one who is(are)the senior most.

So where is the doubt?

Ravikumar.G

Ravikumar.G (Expert)
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26 September 2008 Sec 256 - At the first AGM and every subsequent AGM 1/3rd of rotational directors shall retire from office.

Sanjay

Sanjay (Querist)
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17 October 2008 The doubt is with reference to the validity of the appointment. Whether the appointment is valid till the end of the next AGM or the beginning of the next AGM? Whether the retiring director can act as a Chairman of the meeting in the AGM in which he retires. Clarification is desired on this point.

Regards

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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18 October 2008 End of the AGM.

Sanjay

Sanjay (Querist)
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22 October 2008 Thanks for the response. But could you please confirm as to how you have drawn such a reference, when the Companies Act is silent about this aspect.

Regards

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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30 October 2008 The directors can be appointed only during the meeting therefore the retiring directors hold meeting during the meeting till they are re-appointed.

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