Q. case 1 Public company has 6 directors in office appointed their first GM. The number of Director liable to retire by rotation u/s 255 comes to 4 (2/3rd of 6 is 4). Director should retire u/s 256 ==== Nearest to 1/3rd of rotational directors comes to 1. (1/3rd of 4 is 1.33 i.e. nearest to 1.33 is 1).
case 2 Pvt. Co. has appointed 4 directors in thier first GM.
Now as per Section 255(2) in the above two cases, 1/3 of remaining directors i.e. 2 directors in case of public co. and directors in generally in case of pvt. co. i.e. 4 directors, shall also be appointed by the company in general meeting.
My question is why we should appoint/reappoint 2 directors in case public co. or 4 directors in case pvt. co. which have been already appointed by the company by filing FORM 32.
What is the use of section 255(2) ??? What happens if this section 255(2) is not there.
Plz.. plz.. make it clear to me.
CAclubindia
