Methods of appointment of Directors: 

The appointment of Directors may be made in the following manner: 

(i) Appointment of first Directors by promoters of the company [Section 254]: The first Directors of the company are usually appointed by the promoters. Otherwise, the signatories to the Memorandum are deemed to be the Directors, till the first Directors are elected at the first annual general meeting.

(ii) Appointment of Directors by shareholders at the annual general meeting [Section 255]: Subsequent appointment of Directors is made by the shareholders at the annual general meetings. In case of a public company and a subsidiary private company, two-thirds of the total number of Directors must be appointed by the company at the annual general meeting. At every annual general meeting, one-third of the elected Directors shall retire by rotation. The retiring Directors may be reappointed.

(iii) Appointment of Directors by the Central Government [Section 408]: The Central Gov eminent may appoint some Directors for a period of not more than three years, in the case of mismanagement of company affairs.