Question

In a public company there are 3 directors one is Independent director, one is M.D. and one is promoter director. What should company do for complying section 152?

• A. Retire M.D.
• B. Appoint non executive director who are liable to retire.
• C. Retire promoter director
• D. Retire independent

Answer 1

The correct option is B Appoint non executive director who are liable to retire.

Under Section 152 of the Companies Act, 2013, the appointment of the first director, the subscribers to the memorandum who are individuals shall be deemed to be the first director of the company until the directors are duly appointed and in case of a One Person Company an individual being member shall be deemed to be its first director until the director or directors are duly appointed by the member in accordance with the provisions of this section.

As per the section 149, Every company shall have a Board of Directors consisting of individuals as directors and shall have a minimum number of three directors in the case of a public company.