(1) Where no provision is made in the articles of a company for the appointment
of the first director, the subscribers to the memorandum who are individuals shall be deemed
to be the first directors of the company until the directors are duly appointed and in case of
a One Person Company an individual being member shall be deemed to be its first director
until the director or directors are duly appointed by the member by the
provisions of this section.
(2) Save as otherwise expressly provided in this Act, every director shall be appointed
by the company in general meeting.
(3) No person shall be appointed as a director of a company unless he has been
allotted the Director Identification Number under section 154.
(4) Every person proposed to be appointed as a director by the company in general
meeting or otherwise shall furnish his Director Identification Number and a declaration that
he is not disqualified to become a director under this Act.
(5) A person appointed as a director shall not act as a director unless he gives his
consent to hold the office as director and such consent has been filed with the Registrar
within thirty days of his appointment in such manner as may be prescribed:
Provided that in the case of appointment of an independent director in the general
the meeting, an explanatory statement for such appointment, annexed to the notice for the
the general meeting shall include a statement that in the opinion of the Board, he fulfills the
conditions specified in this Act for such an appointment.
(6) (a) Unless the articles provide for the retirement of all directors at every annual
general meeting, not less than two-thirds of the total number of directors of a public company
shall—
(i) be persons whose period of office is liable to determination by retirement of
directors by rotation; and
(ii) save as otherwise expressly provided in this Act, be appointed by the
company in general meeting.
(b) The remaining directors in the case of any such company shall, in default of, and
subject to any regulations in the articles of the company, also be appointed by the company
in general meeting.
(c) At the first annual general meeting of a public company held next after the date of
the general meeting at which the first directors are appointed by clauses (a)
and (b) and at every subsequent annual general meeting, one-third of such of the directors
for the time being as are liable to retire by rotation, or if their number is neither three nor a
multiple of three, then, the number nearest to one-third, shall retire from office.
(d) The directors to retire by rotation at every annual general meeting shall be those
who have been longest in office since their last appointment, but as between persons who
became directors on the same day, those who are to retire shall, in default of and subject to
any agreement among themselves, be determined by lot.
(e) At the annual general meeting at which a director retires as aforesaid, the company
may fill up the vacancy by appointing the retiring director or some other person thereto.
Explanation.—For this sub-section, “total number of directors” shall
not include independent directors, whether appointed under this Act or any other law for the
time being in force, on the Board of a company.
(7) (a) If the vacancy of the retiring director is not so filled-up and the meeting has not
expressly resolved not to fill the vacancy, the meeting shall stand adjourned till the same day
in the next week, at the same time and place, or if that day is a national holiday, till the next
a succeeding day which is not a holiday, at the same time and place.
(b) If at the adjourned meeting also, the vacancy of the retiring director is not filled up
and that meeting also has not expressly resolved not to fill the vacancy, the retiring director
shall be deemed to have been re-appointed at the adjourned meeting, unless—
(i) at that meeting or the previous meeting a resolution for the re-appointment
of such director has been put to the meeting and lost;
(ii) the retiring director has, by a notice in writing addressed to the company or
its Board of directors expressed his unwillingness to be so re-appointed;
(iii) he is not qualified or is disqualified for appointment;
(iv) a resolution, whether special or ordinary, is required for his appointment or
re-appointment by any provisions of this Act; or
(v) section 162 applies to the case.
Explanation.—For this section and section 160, the expression “retiring
director” means a director retiring by rotation.
