Appointment of directors by third parties.
The Articles under certain circumstances give power to the debenture holders or other creditors, e.g., a banking company or financial corporation, who have advanced loans to the company to appoint their nominees to the board. The number of directors so appointed shall not exceed 1/3 of the total number of directors, and they are not liable to retire by rotation.
The Articles under certain circumstances give power to the debenture holders or other creditors, e.g., a banking company or financial corporation, who have advanced loans to the company to appoint their nominees to the board. The number of directors so appointed shall not exceed 1/3 of the total number of directors, and they are not liable to retire by rotation.
Appointment by Proportional Representation
[Sec. 265]
The Articles of a company may provide for the appointment of not less than 2/3rds of the total number of directors of a public company or of a private company which is a subsidiary of a public company according to the principle of proportional representation. The proportional representation may be by a single transferable vote or by a system of cumulative voting or otherwise. The appointment shall be made once in 3 years and interim casual vacancies shall be filled in the manner as provided in the articles.