Retirement by rotation

Page no : 2

Sneha (Company Secretary) (1594 Points)
Replied 20 May 2013

Dipak as far as I can interpret, it will be 1 in this case.

2/3rd director retire by rotation - 6*2/3 = 4

Other 2 directors are the two MD's who are non - rotational.

Now 1/3rd actually retires i.e. 4*1/3 = 1.33 taken as 1 as term used is "near to 1/3"

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Ankur Garg (Company Secretary and Compliance Officer) (114783 Points)
Replied 20 May 2013

Hi,

Please find below the reply.

In your case the total strength of the board is 6 which includes 1 non rotational director i.e. your MD.

For the purpose of section-255 total strength of the board would be 6.

Determination of rotational directors u/s 255

Rotational directors in your case would be 2/3 of 6 i.e. 4 directors. Here as per section 255 rotational directors would be 4. Remaining 2 will be considered as non- rotational directors and includes your MD.

Determination of Directors liable to retire u/s 256

As per section 256 ---1/3 of rotational directors shall retire at each AGM. Hence 1/3 of 4 would be 1.33.

As per the language of 256 “nearest to 1/3” we can rounded off 1.33 as 1. (As nearest to 1.33 will be 1 as per my understanding).

Now in your AGM you have to retire only 1 director as rotational director.

I hope the calculation method is clear.

Regards

Ankur Garg

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Dipak Soni (Trainee) (111 Points)
Replied 20 May 2013

THANX ANKUR SIR AND SNEHA MAM.....

Now I undrestd.......

Ankur Garg (Company Secretary and Compliance Officer) (114783 Points)
Replied 20 May 2013

Originally posted by : Sneha Binani
	Ankur sir, thank you so much for your clarification on the same. The link has really made the whole provision crystal clear. I always look up to your replies for clearing my doubts.

Thanks Sneha for taking note of the link.

I would suggest you to go through the entire discussion available at that link from first post to last post. I am sure after that section 255 and 256 will be on your tips.

Ankur

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