Term of office of directors

Term of office of directors

(1) The tenure of office of a director of a private company shall be as provided in its articles of association

(2) The tenure of office of a director of a public company shall be as specified in its articles of association, which shall not exceed four years.

Provided that:

• (1) A director appointed by the Government of Nepal or a corporate body shall hold office so long as the Government of Nepal or the appointing body desires.

• (2) A director appointed pursuant to Clauses (1) and (2) of the proviso to Section 87 shall hold office only until the holding of the annual general meeting.

• (3) The term of office of a director appointed to the office of any director which has fallen vacant before the expiry of his/her term of office shall be only the remainder of the tenure of office of that director whose office has so fallen vacant and in whose place one is appointed.

(3) Notwithstanding anything contained in the prevailing law or articles of association, a person retired from the office of director on expiry of his/her tenure of office shall be eligible for reappointment to the office of director.