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.