Whether requirement of giving notice to shareholders regarding candidature for directorship of a person other than retiring director applies to private companies also - Companies Law - Letter : No. 8/16(1)/61‑PR,

Letter : No. 8/16(1)/61 PR, dated 9 5 1961. Subject:- Whether requirement of giving notice to shareholders regarding candidature for directorship of a person other than retiring director applies to private companies also Query : According to new sub section (1A), a notice should be given to all the shareholders regarding the candidature for directorship of a person other than the retiring director 7 days before the meeting of the company in which they are proposed to be elected. Sub section (2) exempts private companies from the operation of sub section (1). It is not clear whether sub section (1A) will apply to private companies or not. Answer : Sub section (1A) applies only where sub section (1) applies. As sub section (2) specifies that sub section (1) shall not apply to a private company, unless it is a subsidiary of a public company, sub section (1A) will also not apply in such a case.