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Question
XYZ Ltd. has total 8 rotational directors. Out of directors liable to retire by rotation, director that will retire at the AGM but eligible for reappointment will be ______.
XYZ Ltd. has total 8 rotational directors. Out of directors liable to retire by rotation, director that will retire at the AGM but eligible for reappointment will be ______.
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Solution
The correct option is B 3
At least two-thirds of the Directors of a public company or of a private company subsidiary of a public company have to retire by rotation and the term "rotational Director" refers to such Directors who have to retire and one-third of these two-thirds of directors may be eligible for re-appointment at the end of his or her tenure. Therefore, XYZ Ltd. had 8 rotational directors and hence out of directors liable to retire by rotation director that will retire at the AGM but eligible for reappointment will be 1/3 of 8 i.e. 2.67 rounded off to 3.
At least two-thirds of the Directors of a public company or of a private company subsidiary of a public company have to retire by rotation and the term "rotational Director" refers to such Directors who have to retire and one-third of these two-thirds of directors may be eligible for re-appointment at the end of his or her tenure. Therefore, XYZ Ltd. had 8 rotational directors and hence out of directors liable to retire by rotation director that will retire at the AGM but eligible for reappointment will be 1/3 of 8 i.e. 2.67 rounded off to 3.
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