Distinguish between the following: Casual vacancy of director Vs. Retirement of director by rotation.

CS Executive · Company Law · PYQS · December 2019
Distinguish between the following: Casual vacancy of director Vs. Retirement of director by rotation.

Answer & Explanation:

Casual vacancy of director Retirement of director by rotation It occurs due to death, resignation, disqualification, removal or for any other reason other than retirement or expiry of tenure of office of a director. It is regulated by the provisions of the Companies Act, 2013 wherein, in the case of a public company not less than 2/3rd of the total number of directors shall be liable to retire by rotation. Board of directors are authorized to fill casual vacancy of directors who were appointed in general meeting, which shall be subsequently approved by the members in the immediate next general meeting. Vacancy arising due to retirement of director by rotation to be filled in the general meeting. The person appointed to fill casual vacancy will hold the office for the entire remaining period of tenure for which the person in whose place he is to be appointed, would have held the office. The person filling the vacancy arising due to retirement of director by rotation will hold the office till the time of next AGM at which he would be liable for retirement by rotation. No penal consequences if the casual vacancy is not filled by the Board of directors. Penal consequences to occur if provisions contained in section 152 with respect to retirement by rotation is not followed.

Topics: Directors

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic