Director retire by rotation as per section 152 of ca 2013

Co Act 2013 45708 views 23 replies

sir  is der any diff between peroid of office liable for retirement and retirement of director

 

Replies (23)

sir  is der any diff between peroid of office liable for retirement and retirement of director

 

query:-

in case private company only two director, so section 152 retirement is applicable ????

how to deal with ? if any

as per my understanding Independent Director can be retired because in section 152 (6)(a) "Unless the articles provide for the retirement of all directors at every annual general meeting" so we can say that every director can be retired if article provided. let's considered other views

As per section 152 other directors than independent directors must retire at AGM but you have a contract between managing director as they canot be retired by rotation. Doing this agreement or mentioning in its AOA is just overwriting the laws of companies act 2013 which is not allowed , as company law cannot be overwrite by aoa or an agreement

.In case a public company has three directors. Out of three directors 1 director is an independent director whose office is not liable to retire by rotation, 1 director is a managing director appointed for a fixed term and 1 is the promoter director/ director appointed pursuant to share purchase agreement/ nominee director etc. whose office also is not liable to retirement by rotation. How can such a company ensure the compliance of section 152 (6) and (7)?

 

Ans. In such situations it is advised that companies appoint such number of nonexecutive directors whose office is liable to retire by rotation and thereby ensure compliance of Section 152(6) and (7).

Is every company is to retire director by rotation

 

who shall NOT INCLUDE total directors while counting two third of total directors as per rotation of retiring director u/s. 152(6)

In my company (unlisted public company), there are 1 MD, 4 WTD and 3 ID. 

MD and WTD are appointed for 3 years. (AOA provides that MD and WTD are eligible to retire by rotation.

Now my question is who will retire by rotation?

Pls revert.

 

why this provision is kept of retiring directors. please put some light


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