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retirement by rotation

735 views 6 replies

akshay Dubey

7 Points Posted on 20 March 2018

what is retirement by rotation? is it mandatory for all directors to retire by rotation?

Replies (6)

Divakar

Student CA Final

11857 Points Posted on 20 March 2018

Yes 3/4th director from total no of directors is rotational directors.... And 1/3rd of 2/3rd is retired in AGM

CS Smreti

641 Points Posted on 20 March 2018

2/3 should be liable to retire and 1/3 out of those 2/3 must retire

Vinayak Mishra

192 Points Posted on 21 March 2018

Theoretically you can remember the net figure 2/9(2/3*1/3)
If in decimal rounded off the nearest one.
Result is the no.of directors liable to retirement

Jatin Bajaj

2942 Points Posted on 21 March 2018

As per Section 152(6) of the companies act 2013, directors liable to be retire by rotation applicable only to public companies

2/3rd of the directors liable to be retire by rotation and out of 2/3, 1/3 of the Director retire by rotation every year.

Directors whose tennure will be longest will retire first. These provisions are not applicable to independent and non executive directors and directors appointed by small shareholder.

Vinayak Mishra

192 Points Posted on 21 March 2018

whether additional, alternate director are required to be included while calculating limit of 2/3or 1/3

Check the provision under articles weather there is provision for additional directors for retirement by rotation. But as per section 152(6) of the companies act save as expressely provided the directors who shall be rotated at every agm shall be the directors who are appointed in AGM and additional directors are not included till they are regularized in AGM