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are Nominee Directors Non Rotational?

Others 985 views 10 replies
while complying with sec 152(6) of The companies act 2013, will nominee directors in company be considered in limit or not??
Replies (10)
They should be considered and be placed in non rotational
give me legal support plz
Yes nominee directors to be rotated
only independent director are exempted
Hello Smriti, thanks for your response,
do u mean Nominee Directors are liable to retire by rotation?
also answer, Is MD liable to retire by rotation?
yes nominee director are liable to retire by rotation.
Only some PSU companies have been exempted.
Further w.r.t Managing Director, MD is appointed for a fixed term therefore not liable to retire by rotation.
if n.d is of any authority established under special act than such nd will not count in limit max 15 and 2/3rd or 1/3 rd
legal support. special act prevail over general law eg:- lic

nd of any other authority accept above shall be count in 1/3rd non rotational
legal support. here the tenure is fixed by BOD at board meeting and u/s 152(6) 2/3rd dir's tenure shall determine by rotation

got it or explain more
I got your mean but kindly quote any legal support like circular, notification etc which is stating that Nominee Directors and fixed term directors like MD are not counted in said limits of sec 152(6)
Section 152 clearly states that nominee not included. And MD IS LIABLE FOR ROTATION


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