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.
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Ajay Mishra
(Expert)
26 July 2013
My pleasure...........
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