CS Executive · Company Law and Practice · Directors
Arjun Engineering Ltd, a public company, has 6 directors liable to retire by rotation. At the AGM, how many of them must retire, and which ones?
Two directors must retire, being one-third of the six liable to retire by rotation. They are those who have been longest in office since their last appointment, with lots used between persons appointed on the same day absent agreement.
- AThree, chosen by the chairman
- BOne, the youngest in age
- CTwo, those longest in office since last appointmentCorrect
- DTwo, those holding the most shares
Explanation
One-third of 6 is 2. Those to retire are the ones longest in office since their last appointment, with ties on the same day decided by agreement or lot. Age or shareholding is irrelevant.
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