16 April 2011
Is it required to appoint a director in place of a director who retires by rotation and does not offer himself for reappointment at AGM? Points to be noted that even after his retirement, composition of Board is well within the provision of companies Act. Please suggest.
18 April 2011
It is not necessary to appoint a director in place of the retiring director if the composition of the Board fulfils the requirements of Companies Act, 1956.
However, the company should expressly resolve not to fill the vacancy and record its decision in the minutes(Section 256(4)(a), if no new director is appointed in place of the retiring director.
CAclubindia
