Retirement by rotation of directors

This query is : Resolved

Manu (Querist)
Follow

19 February 2017 Hello,
I am preparing for CA Final May 2017 for the first time-self study.

Haven't been to any coaching classes.

I am strictly following ICAI Study Material and Practice Manual and not referring to any other Author Books.

Re: Company Law-Retirement of Directors by Rotation.

In the study Material it is given that out of 2/3rd, 1/3rd will retire and if it is a decimal Number then "Number nearest to 1/3rd shall Retire".

Further an example is given that If 6 are Total No of Directors, 4 will be liable to retire, and out of 4, 4x1/3=1.33 will retire i.e Only one will retire.

But in the practice Manual Q 5, Pg: 3.5, it is stated as 2 will retire. Which is Right.

I am not clear about the phrase ""Number nearest to 1/3rd shall Retire"". Let me know what it means. Does it mean Rounding off to nearest Decimal or considering any fraction as 1.

Thank You.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
Follow

20 February 2017 If Total No. of Directors= 5
Total No. of Rotational Director= (5*2/3)=2
No. of retiring director= (2*1/3)= 1

At every subsequent annual general meeting after first AGM, one-third of rotational directors for the time being as are liable to retire by rotation.

if their number is neither three nor a multiple of three, then, the number nearest to one-third, shall retire from office.