Terms Of Directors

Question 1

Terms

Answer 1

Term of Directors

At Incorporation
- First directors are decided by the subscribers of the memorandum.
- Their particulars are submitted with incorporation documents.

Additional Directors
- First directors can be increased by appointing additional directors in a general meeting.

Retirement of First Directors
- First directors hold office until the first annual general meeting (AGM).

Term of Office of Subsequent Directors
- Elected directors hold office for 3 years, unless they resign or cease to hold office.
- Companies limited by guarantee without share capital may have shorter terms as per articles.

Duty of Retiring Directors
- Continue performing functions until successors are elected.
- Take immediate steps to hold director elections.
- Report impediments to the registrar within 45 days before the AGM or EGM.

Timing of AGM or EGM
- Shall not be delayed more than 90 days from the due date, except in exceptional circumstances.

Direction by registrar
The registrar, may on expiry of period (for election), either:
a) on its own motion; or
b) on the representation of the members holding at least 10% of total voting powers in a company having
share capital; or
c) on the representation of the members holding at least 10% of total members of the company not having
share capital of the company,
directs the company to hold annual general meeting or extra-ordinary general meeting for the election of
directors on such date and time as may be specified in the order.