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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