Rotation of Directors

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.
References in periodicals archive ?
Periodic rotation of directors can inject new enthusiasm, new ideas and new perspectives on old problems.
The Board will also propose a scheme for alternating rotation of Directors.
Deroubaix succeeds Tim Ling, president and COO of Unocal and the Trade-Ranger board's first chairman, in a planned rotation of directors.