Audit Assistant
804 Points
Joined May 2009
forget about sections, it can be summarised as follows:
A public limited company should have not less then 2/3rd of total number of directors as Directors who shall retire by rotation. (for example, if there are 12 directors, 8 directors shall be directors who shall retire by rotation every year)
how many should retire? Out of the directors who shall retire by rotation (in this case, 8), 1/3rd of them should retire every AGM, 1/3rd of 8 is 2.66, round it to 3, so in a year 3 directors shall retire by rotation. Thay shall be eligible for re appoinment.
ABove provisions not applicable to private companies.
In short a public company can have only 1/3rd of total number of directors who shall not retire by rotation.
Private company can have all its directors as permanent.
Also, in case of public company, AOA can provide that all directors shall retire by rotation.
In short limit is for permanent directors, no limit for directors retiring by rotation, every director can be made to retire at AGM, but provide for the same in AOA.
I hope i have made the provisions short and simple, there are many other points, which are even more simple. ABove points are main provisions.