Retirement of directors

What is the difference between the provisions relating to retirement of directors as per Section 152(6)(a) and 152(6)(c) of the Companies Act, 2013 because I find that the number of directors to retire by rotation in the two clauses are different, viz, Two third in the former case and one third in the latter. 

Please help.

(Refer Page 93 of the file attached below)


Attached File : 1176653 20150829125320 companies act 2013.pdf downloaded: 277 times
Replies (6)

Section 152 (6) – retirement of directors by rotation not applicable to private companies which are subsidiaries of public companies which was hitherto covered by the Act. 

For the purpose of calculation of two thirds of “total number of directors” independent directors shall not included in the “total number of directors”

but in sub section (6)(c) it says that (c) At the first annual general meeting of a public company held next after the date of the general meeting at which the first directors are appointed in accordance with clauses (a) and (b) and at every subsequent annual general meeting, one-third of such of the directors for the time being as are liable to retire by rotation, or if their number is neither three nor a multiple of three, then, the number nearest to one-third, shall retire from office.

Dear Achinth,

As per 6 (a) unless the articles provide for the retirement of all directors at every annual general meeting, not less than two-thirds of the total number of directors of a public company shall be persons whose period of offfice is liable to determination by retirement of directors by rotatiion.

as per 6(b), at every subsequent AGM, one-third of such of the directors for the time being as are liable to retire by rotation or if their number is neither three nor a multiple of three, then, the number nearest to one-third shall retire fro office.

Total number of directors shall not include independent directors.

illustration: if the Company have 9 Directors consisting of 3 Independent Director, Pursuant to clause 6(a) , 4 directors are liable to determination by retirement  by rotation (Independent directors not included) and pursuant to clause 6(b), out of four, one third is liable to retire in AGM, it means one directors is liable to retire.

Dear Prakashji,

 

Is section 152 (6) not applicable to private company which are subsidiary of holding public company. is definition given in section 2(71) of act not applicable to this section?

 

Regards,

Kalpesh Veer

Dear Parkash Ji,

As per your illustration, the director who shall retire will be 2 as 1/3rd of 4 is 1.33 so any point more than the 1 shall be round off to the next figure i.e. 2

where was it said that section 152(6) is not applicable to private limited company

APPLY MATHEMATICAL RULES FOR ROUNDING OFF............

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
02 November 2026
Audit Executive

SRJP & Co LLP

Kochi

CA Inter

View Details
Company
ARTICLESHIP 07 November 2026
Article Assisstant

DPV & Associates

Chennai

CA Inter

View Details
Company
31 October 2026
Accountants

sankaran and krishnan

New Delhi

B.Com

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details