Appointment Of Director With Retrospective Effect In Clark
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What is the retrospective effect? When a change is implemented that affects the past in addition to the present and the future, it is called a retroactive change. If the corporation makes a change in its accounting standards, for instance, such change must be treated as a change of method with a retrospective effect.
Retrospective means looking back. An art exhibit that cover an artist's entire career is called a retrospective because it looks back at the work the artist has produced over many years. Retro- means back, -spect- means look (think: spectacles), so the word means literally 'a looking back.
A company director can be appointed during company formation and at any time thereafter.
A Private Company must have a minimum of two directors and can have up to fifteen. If needed, the company can exceed this limit by appointing additional directors through a special resolution, which demands support from over 75% of the voting shareholders.
For an ordinary resolution to be passed at the meeting to appoint a director, or directors, such resolution must be supported by more than 50% of the shareholders who are eligible to vote at the meeting.
There is no legal requirement for a limited company director to also be a shareholder. So as a general rule, a person can be made a director, a shareholder, or both. The position of directors and shareholders differs in the remit of their role, their rights, and their responsibilities.
The company should hold a general meeting at the time and date fixed in the board meeting and obtain shareholders' approval for the appointment of the managing director through a resolution.
For an ordinary resolution to be passed at the meeting to appoint a director, or directors, such resolution must be supported by more than 50% of the shareholders who are eligible to vote at the meeting.
As a director, you can own shares in your company. However, there is no requirement for a director to hold shares. Nevertheless, a company constitution may state that the director must hold a specified amount of shares. This amount may be a requirement before they are appointed.
