27 October 2009
A private limited company has named 2 induvidals as first directors of the company without specfing any tenure of office.
the articles provides that " at the first AGM and every AGM all directors liable to retirement by rotation, shall retire and that the retiring Director shall be eligible for reappointment"
I am of the view that the first directors have to retire at the first agm and that they may be reappointed. is this the right position given the above provisions in the articles.
More importantly, when the 2 directors are reappointed at the first AGM can they be appointed for life to avoid reappointment at each AGM. will it require an amendment to Articles.
27 October 2009
retirement by rotation is not applicable to a pvt ltd company, a person can be appointed as director for the whole life of the company.
CAclubindia
