1. A nominee director possess all the powers of a directors. So he can participate in a BM and can also vote. Also counted for quorum.
2. No additional director is not liable to retire by rotation. However after regularisation in the GM u/s 257 he will be liable to get retire by rotation.
26 October 2010
Hi The Nominee Director is not counted for determining the strength of the Board or for the purpose of retirement of directors by rotation in the case of nominees and institutions under which nominate them by virtue of powers vested in them under the enactments under which they have been constituted. In other case such nominees will be counted for the purpose of determining the strength of the Board of Director and for determining the number of directors liable to retire by rotation., He will also be taken into consideration for quorum of the meeting. Nominee Director is appointed by Financial Institutions. Nominee director is considered as independent director for the purpose of provisions of Corporate Governance applicable to listed company.
CAclubindia
