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Sir after studying the text I have come to understand the point that at the first AGM of the company all directors shall retire as these directors are not really appointed by the shareholders so they are all required to get themselves retire at the first AGM of the company. Now my question is and the point which I didn’t get it from reading the text is that what will happen in the subsequent AGM of the company? How would we be able to know that at subsequent AGM which directors will present themselves for retirement? How do we choose which director will get retire? and what if any of the directors not get appointed or re-elected at one of the preceding two AGMs?
First point – I believe that your ante-penultimate word should be “following” and not “preceding”
After the first AGM one third of the directors should retire and, if they wish, submit themselves for re-election.
How do we know which directors should retire? They draw straws!
Next year a half of the other directors again draw straws and, at the fourth AGM, the last third retire
So, with 9 directors, at the second AGM, say B, F and H lose out and retire
At the third AGM, say C, D and G have to retire
At the fourth AGM, A, E and I have to retire
Then, at the fifth AGM, it’s the turn of B, F and H again
If a director retires and seeks re-election, but fails ?, then that director is out of work!
OK?
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