Rotation of Directors

(redirected from Director Rotation)

Rotation of Directors

A requirement in a company's bylaws or articles of incorporation stating that one third of the members of the board of directors shall resign at each annual general meeting. However, they may be re-elected. Rotation of directors allows a company to bring in new leadership as needed while still keeping institutional memory in the form of the other two thirds of directors. Most British companies have rotation of directors. See also: Staggered terms.
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The full paper also explores why and how high-growth companies are likely to be more successful with the right board members at their side, and offers advice from successful entrepreneurs and investors, including how to build the right board, getting the board composition right, the art of director rotation and overall approaches to board communication to encourage open and honest dialogue and shared results.
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