Directors
This query is : Resolved
15 October 2012
Hello to all experts,
Can u explain me the difference between rotational and non rotational directors. I am confused??????
Can u explain me the difference between rotational and non rotational directors. I am confused??????
15 October 2012
Hi
Rotational director means director liable to retire by rotation as per section 255 and 256 of the Companies, 1956.
No-Rotation director are those directors which are not covered under section 255 and 256 of the Companies Act, 1956.It includes, Managing Director, Whole Time Director, Additional Director and Director appointed under section 408.
Rotational director means director liable to retire by rotation as per section 255 and 256 of the Companies, 1956.
No-Rotation director are those directors which are not covered under section 255 and 256 of the Companies Act, 1956.It includes, Managing Director, Whole Time Director, Additional Director and Director appointed under section 408.
15 October 2012
Provisions relating to the retirement of directors by rotation:
A company may include suitable provision in the Articles of Association in this regard as follows:—
1. Not less than two-thirds of the total number of directors shall (a) be persons whose period of office is liable to retirement by rotation and (b) save as otherwise expressly provided in the Act, be appointed by the company in general meeting.
2. At every annual general meeting, one-third of the directors for the time being as are liable to retire by rotation, or if their number is not three or a multiple of three, then the number nearest to one-third shall retire from office.
3. The directors to retire by rotation at every annual general meeting shall be those who have been longest in office since their last appointment, but as between persons who became directors on the same day, those who are to retire shall, in default of and subject to the agreement among themselves, be determined by lot.
Provisions relating to the retirement of directors by rotation:
A company may include suitable provision in the Articles of Association in this regard as follows:—
1. Not less than two-thirds of the total number of directors shall (a) be persons whose period of office is liable to retirement by rotation and (b) save as otherwise expressly provided in the Act, be appointed by the company in general meeting.
2. At every annual general meeting, one-third of the directors for the time being as are liable to retire by rotation, or if their number is not three or a multiple of three, then the number nearest to one-third shall retire from office.
3. The directors to retire by rotation at every annual general meeting shall be those who have been longest in office since their last appointment, but as between persons who became directors on the same day, those who are to retire shall, in default of and subject to the agreement among themselves, be determined by lot.
16 October 2012
Sir if any fraction arises while calculating the number of directors (rotational/ non rotational/ retiring ) then hown they are to be counted..
16 October 2012
Hi
suppose your company have five directors then 1/3rd means 1.67 it means two director will retire.
In other case if the company have only 4 directors then 1/3 rd means 1.34, it means only one director will retire.
Section 256 says the person nearest to one third will be liable to retire.
suppose your company have five directors then 1/3rd means 1.67 it means two director will retire.
In other case if the company have only 4 directors then 1/3 rd means 1.34, it means only one director will retire.
Section 256 says the person nearest to one third will be liable to retire.
16 October 2012
Okk it means it need to be rounded off in each case..
16 October 2012
Yes, near to one third.
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