Tenure of director - private company

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Anil (Querist)
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27 July 2014 A director has been appointed in EGM. The resolution in EGM says - The term of office will be decided by the Board from time to time.

There is no board resolution talking about the tenure of the director so appointed.

Should above Director retire every year or should one consider him to be permanent director ?

Kindly quote section numbers wherever possible.

Ankur Garg

Ankur Garg (Expert)
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27 July 2014 provisions related to rotational director are not applicable on a private company.

I think there is no need to worry as your director is a permanent director appointed by the shareholders. However language of the resolution is faulty.

But you can continue without any action on your part. wait for the opinion of other experts.

Thanks

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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27 July 2014 The resolution is ill drafted. However, check the consonance with the article,if any, of the A.O.A.

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Anil

Anil (Querist)
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27 July 2014 Dear Warrier sir,

THE AOA says The directors of the company are not liable to retire by rotation and additional director if so appointed by board shall retire at coming next AGM

Ankur Garg

Ankur Garg (Expert)
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27 July 2014 AOA drafting is perfect and in accordance with Law.

Thanks