Question

Select the correct option given below :

In the public company _______ directors are eligible to retire every year.

• A. All
• B. One-third
• C. Two-third
• D. None of these

Answer 1

Answer: (B)

One-third

As per the Companies Act, this provision is applicable to all the public Companies and Private Limited Company which is a subsidiary of a Public Company that every subsequent annual general meeting after the first AGM, one-third of rotational directors for the time being are liable to retire by rotation and if their number is neither three nor a multiple of three, then, the number nearest to one-third shall retire from office. At every annual general meeting, the Director who has been longest in office since their last appointment will be liable to retire by rotation first.

Thus the correct answer is B.