Section 255
This query is : Resolved
26 July 2013
Dear Sir,
i have one practical query that. in a company there were 9 directors, so the directors retiring by rotation is 6 directors and non-retiring directors are 3.
now my query is that if two retiring directors resign from there job.
what will be the ratio of retiring directors
and non retiring directors.
i have one practical query that. in a company there were 9 directors, so the directors retiring by rotation is 6 directors and non-retiring directors are 3.
now my query is that if two retiring directors resign from there job.
what will be the ratio of retiring directors
and non retiring directors.
Ajay Mishra
(Expert)
26 July 2013
Hi
One third out of 4 retiring directors will resign.
As per this only one director will resign in upcoming AGM, because only 1/3 is less than two directors .
Fraction if any, may be corrected to the nearest whole number for working out one-third. It is advisable to round off any fraction as one, irrespective of whether the fraction is half or less than half.
One third out of 4 retiring directors will resign.
As per this only one director will resign in upcoming AGM, because only 1/3 is less than two directors .
Fraction if any, may be corrected to the nearest whole number for working out one-third. It is advisable to round off any fraction as one, irrespective of whether the fraction is half or less than half.
26 July 2013
thank you Ajay Sir for your reply.
but sir 2/3rd of 7 director will be around 4.66, so it is advisable to round off this amount to 5.
and in this case the Permanent director will be only 2.
so is it possible to convert non retiring director to a retiring one, if yes then how ?
Thank you very much
but sir 2/3rd of 7 director will be around 4.66, so it is advisable to round off this amount to 5.
and in this case the Permanent director will be only 2.
so is it possible to convert non retiring director to a retiring one, if yes then how ?
Thank you very much
Ajay Mishra
(Expert)
26 July 2013
As per your query, you said that only 6 director are directors liable to retire and out of which 2 directors has resigned. It means you have only 4 directors on which section 255 and 256 will apply.
Ajay Mishra
(Expert)
26 July 2013
Please see the said example:
Ascertainment of directors liable to retire by rotation
Let us assume that in a public company:—
Total strength of directors is 12
Nominee directors of LIC and UTI are 2
Total strength of directors for the purpose of section 255 10
2/3rd of total strength will be 7
1/3rd of Directors due to retirement will be 3 in the 1st year
2 in the 2nd year, and
2 in the 3rd year
If the Articles so provide, the remaining 3 directors will be non-retiring comprising of Managing Directors, Joint Managing Director, and Nominee Director, if applicable, in the above example.
Ascertainment of directors liable to retire by rotation
Let us assume that in a public company:—
Total strength of directors is 12
Nominee directors of LIC and UTI are 2
Total strength of directors for the purpose of section 255 10
2/3rd of total strength will be 7
1/3rd of Directors due to retirement will be 3 in the 1st year
2 in the 2nd year, and
2 in the 3rd year
If the Articles so provide, the remaining 3 directors will be non-retiring comprising of Managing Directors, Joint Managing Director, and Nominee Director, if applicable, in the above example.
Message likes :
1 times
Ajay Mishra
(Expert)
26 July 2013
My pleasure...........
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst credit note by supplier
- Movement of goods by packers and movers - type of sale - Reg.
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Missed uploading GST Invoice
- Query on effect of registration of property
- Gratuity paid to legal heir above 20 lakh is taxable or not
- Wrong CMPo8 file
- Equity Share Sale and Purchase
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
