His or her tenure is over: one-third of the directors will resign at the Annual General Meeting (AGM). When no other deals are signed, the directors must draw lots in the first two years to resign, and the directors with the longest tenure must resign in the third year. Additionally, the AGM has to name new replacement executives. Shareholders decided to terminate a director (by Shareholders’ Meeting Resolution). The director’s resignation (because of simple resignation, decease, bankruptcy or incapacity).
The triggers that could lead to a company to such a situation may be:
|➤ As per the Annual General Meeting, the former director has completed his tenure. It so happens that one-third of the company's directors will resign at the company's annual general meeting. When there is a difference between the directors and they are unable to make a definitive conclusion, a decision must be made in the first two years via the lots drawn by directors to withdraw, and the longest is three years. The Director of Replacement is voted on at the annual meeting|
|➤ The former managing director has resigned. It can either be a personal (illness) or a professional (better opportunity), bankruptcy, or inability to perform their duties will give them some reasons for resigning|
|➤ Investors exercised their right to withdraw a director from office|