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are Nominee Directors Non Rotational?

20 February 2018

while complying with sec 152(6) of The companies act 2013, will nominee directors in company be considered in limit or not??

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10 Replies

Venkateswara Rao (AA) (27 Points)
Replied 20 February 2018

They should be considered and be placed in non rotational

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Shubham Chaurasia (52 Points)
Replied 20 February 2018

give me legal support plz

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CS Smreti (cs) (641 Points)
Replied 20 February 2018

Yes nominee directors to be rotated

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CS Smreti (cs) (641 Points)
Replied 20 February 2018

only independent director are exempted

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Shubham Chaurasia (52 Points)
Replied 20 February 2018

Hello Smriti, thanks for your response,
do u mean Nominee Directors are liable to retire by rotation?

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Shubham Chaurasia (52 Points)
Replied 20 February 2018

also answer, Is MD liable to retire by rotation?

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CS Smreti (cs) (641 Points)
Replied 21 February 2018

yes nominee director are liable to retire by rotation.
Only some PSU companies have been exempted.
Further w.r.t Managing Director, MD is appointed for a fixed term therefore not liable to retire by rotation.

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sumit (kumar) (171 Points)
Replied 23 February 2018

if n.d is of any authority established under special act than such nd will not count in limit max 15 and 2/3rd or 1/3 rd
legal support. special act prevail over general law eg:- lic

nd of any other authority accept above shall be count in 1/3rd non rotational
legal support. here the tenure is fixed by BOD at board meeting and u/s 152(6) 2/3rd dir's tenure shall determine by rotation

got it or explain more

Shubham Chaurasia (52 Points)
Replied 23 February 2018

I got your mean but kindly quote any legal support like circular, notification etc which is stating that Nominee Directors and fixed term directors like MD are not counted in said limits of sec 152(6)