section 255 and 256

Whether Whole time directors are liable to retire by rotation or not???

 

In my opinion NO.

 

Because of the contract of 3 or 5 years.

MD and WTD are not liable to retire by rotation.

 

In case the no. of directors falls short for the calculation of 2/3 of total strength of BOard.Then and only then WTD are included in the rotational part, otherwise not.

 

Other's and contrary views are most welcome.

 

 

Replies (4)

For Example:-

Board of Directors:- 5 Members

1 MD

1 Executive Director

3 Non Executive Directors

 

Under Section 255:- Directors liable to retiere by rotation are 5*2/3=3.33 i.e. 3

Now whether ED is also rotational.

I my opinion not at all.

what is the relevant section sir ?

MD and WTD are also considered in the total strength of Directors. They can be rorational or Non- Rotational, subject to the limit under section 255 (ie. 2/3 of the total board) are liable for rotation.

Ex. if total Directors is 5, then 2/3 of 5=3.33 rounded off to 4 directors, are liable to rotate.

Out of the four, 1/3rd should rotate in the coming AGM. Equal to 1/3 of 4= 1.33 rounded off to nearest integer = 1 director.

Dear Akash, Section is already mention in the query.....

Anyways the relevant section is 255 and 256.

 

All professional friends, please give your valuable comments on the matter.

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