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COMPANY LAW QUERIES (final)

Anil Kumar (looking for the best avenue) (303 Points)

20 August 2010

Q.1 - In case more than one group of small share holders nominate different people as SMALL SHAREHOLDER DIRECTOR, how the SSD will be appointed ?

Q.2 - If in a company, 7 directors are rotational , then in what sequence they will retire at each AGM ?

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5 Replies

sudhakar ca cwa (service) (1518 Points)
Replied 20 August 2010

the section specified that no tless than 2/3rd directors liable for retirement. that means fraction count as one

out of those 1/3rd will liable to retire at each AGM. here it is normal fraction

answer to your question 7 directors 1/3rd of 7 is 2.33 taht means 2directors will retire at each AGM

FIFO method is applicable.

if two or more directors appointed in the same day, then they have to deceide who has to retire or confilct arise it has to resloved by any method

Anil Kumar (looking for the best avenue) (303 Points)
Replied 20 August 2010

@ sudhakar : i'm mainly asking bout 3rd AGM,how many directors will retire at that time, 2 or remaining 3 after 4 already have been retired in last two AGMs.

HARDIK (COMPANY SECRETARY NCFM (Corporate Governance )) (664 Points)
Replied 21 August 2010

read section 256(1) and (2) it will sort out your query.

Joey Tribbiani (fdg) (2010 Points)
Replied 22 August 2010

Originally posted by : Anil Kumar
	@ sudhakar : i'm mainly asking bout 3rd AGM,how many directors will retire at that time, 2 or remaining 3 after 4 already have been retired in last two AGMs.

Dear Anil,the number of directors cannot fall below 3 in a public company.Hence in 2nd AGM itself addl directors will be appointed to comply with the provisions of section 256