Remaining as Director beyond 3 years

[gebbel]

I am aware of the rules which state:

"In some existing developments, directors appointed by the developer are entitled to remain as directors for life. This is no longer possible since 1 April 2011 and directors in place on 1 April 2011 must cease to be directors by 1 April 2014 at the latest. All new directors will be limited to a term of 3 years".

In the small development where I am one of the Directors, I would like to carry on beyond 3 years and would have the backing of the others in this regard. So do I resign and apply again or is it not legally possible at all?

Thanks

 

[10amwalker]

In the small development where I am one of the Directors, I would like to carry on beyond 3 years and would have the backing of the others in this regard. So do I resign and apply again or is it not legally possible at all?

Thanks

It is my belief that you resign and then offer yourself for re election. You are acting in accordance with the MUD Act. The provision was included so that life time directors appointed by the developer or the developer themselves was no longer legal.

I would suggest that you also look at your memo and articles of association for your company. It may state that all directors resign or that the longest serving director resign.

3 years is a time frame that appears at least twice in the MUD Act
- no contract can be entered into for greater than 3 years
- all directors limited to a 3 year term.

10amwalker