Query regarding Rotation of Directors

This query is : Resolved

Guest

Guest (Querist)

15 September 2009 Query regarding Rotation of Directors :

A public company has 2 First Directors (3rd First Director resigned already) and 2 more directors subsequently have been appointed.

Is it that the First Directors (i.e. the said 2) are not liable for rotation ?

Why this rotation for directors is in place ? May be explained.

Ankur Garg

Ankur Garg (Expert)
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16 September 2009 Provisions connected with rotational retirement are not applicable to the first director of the company.

Read sub section (1) of section 256 very carefully.

Regards

Guest

Guest (Querist)

16 September 2009 Sir, I need clarity in the following matter, kindly see '.......... one-third of...... are liable for rotation' and also mention why this requirement is in place :

256. Ascertainment of directors retiring by rotation and filling of vacancies

(1) At the first annual general meeting of a public company, or a private company which is a subsidiary of a public company held next after the date of the general meeting at which the first directors are appointed in accordance with section 255 and at every subsequent annual general meeting, one-third of such 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.

Guest

Guest (Expert)

22 September 2009 DEEKAY, Your question is Right. Mr. Garg is the Expert of this field. Somehow, He has done the mistake. So, I say sorry instead of him to you.

Check out the following link for the reason of retire by rotation :https://www.caclubindia.com/forum/messages/2009/9/48926_reson_for_retire_by_rotatio_system.asp

Message likes : 1 times

Guest

Guest (Querist)

22 September 2009 Dear Ankur Shah,

I at first appreciate that you have put best efforts.

I still would like to hear some more reasons on the matter.

I have seen a public company, which has one first director (other two already ceased) with new two directors, who were appointed in the AGM held on September 2008.

Now, in the ensuing AGM, who is supposed to get retired and reappointed - whether the First Director or either one of the next two directors.

Please extend your best efforts.

Guest

Guest (Expert)

23 September 2009 Directors that were appointed in the AGM 2008 will be retire by rotation.

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