Rotation of Directors

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Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2010 There are 9 Directors in a company,there is not a wholetime diector, MD and permanent Director? so how many directors should actually retire?

udit sharma

udit sharma (Expert)

13 December 2010 In my opinion since there is no non-rotational Director, No. of Directors to actually retire should be 3.

God Bless

Udit Sharma

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Jayashree S Iyer

Jayashree S Iyer (Expert)

13 December 2010 The appointment of 6 directors should be subject to retirement by rotation and 3 should retire at each AGM. 3 directors who have been longest in office since their last appointment should retire first.

Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2010 Sir...

Will you pl elaborate your answer with references to sections.

udit sharma

udit sharma (Expert)

14 December 2010 As per section 255 & 256 of the Companies Act, 1956 in case of a Public Limited Company or a Private Company which is a subsidiary of a Public Limited Company. not less than 2/3rd of the total number of Directors shall be the ones whose office shall be liable to be determined by rotation. Hence, at the most the Company can have not more than 1/3rd Directors as Non-Rotational Directors.

Out of the total 2/3rd of the total number of Directors whose office shall be determined by rotation, 1/3rd shall be the Directors who shall be liable to retire by rotation.Directors who have been the longest in the office since their last appointment shall retire first.

Since,in your case there is no non rotational Directors, all the Directors shall be liable to retire by rotation. Out of the total 9 Directors, 1/3rd i.e. 3 Directors shall actually retire by rotation at the AGM of the Company.

Hope i am able to explain my point...

God Bless

Udit Sharma

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Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2010 Thank u sir.

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