Who Appoints Board Directors?

Who Appoints Board Directors?

1 Answer

  1. According to the Company laws, in a public company or a private company, two-thirds of the total numbers of Directors are appointed by the shareholders and the remaining one-third is appointed in accordance with the manner prescribed in Articles. If that does not happen or it fails, then the remaining one third shall also be appointed by the shareholders of a company. The Articles of a public company or a private company subsidiary of a public company may provide for the retirement of all the Directors also.
    In a private company, which is not a subsidiary of a public company, the Articles can prescribe the manner of appointment of any or all the Directors. In case there are no articles regarding it then again they are appointed by the shareholders.
    The Companies Act also permits the Articles to provide for the appointment of two-thirds of the Directors according to the principle of proportional representation, if so adopted by the company in question while Nominee directors can be appointed either by the Articles or the Government.

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