Rotational Directors

This query is : Resolved

Guest

Guest (Querist)

15 September 2009 Query regarding Rotational Director :

A Public company has :

3 First Directors w.e.f. 01.09.08
1 Director w.e.f. 01.12.08 (EGM Appt)
1 Director w.e.f. 01.05.09 (EGM Appt)

No resignation of directors till date.

How do we determine the rotational directors from the above 5 ?

Await the response.

CP Ram

CP Ram (Expert)
Follow

15 September 2009 As per section 255, not less than 2/3rd of total number of directors shall be the directors whose period of office is liable to determination by retirement by rotation (any fraction contained in that 2/3 shall be rounded off as one)

And as per section 256, at the first AGM and every subsequent AGM 1/3rd (or nearest to 1/3rd) of directors liable to retire by rotation shall retire from the office.

In view of the above provisions:

1) Number of Rotational Directors = 4 directors and

2) Number of Directors who shall retire at the first AGM and every subsequent AGM = 1 director.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
Follow

16 September 2009 Number of Rotational Directors = 4 director

Number of Directors who shall retire at the first AGM and every subsequent AGM = 1 directors ( i.e 4*1/3)

According to Section 256, out of the 2/3rds rotational directors only 1/3rds must retire by rotation at one general meeting. If the number is not three or multiple of three, then the number nearest to 1/3 must retire from office.

Upgrade to CAclubindia Pro. Subscribe Now!