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Question


Roman

Is having an investor Director common in Companies?

Someone suggested having an investor director on board our company - an inv. dir. is someone nominated by atleast 15% of the investors to represent them at the board of director level and whos consent is required for a range of decisions.

4 months ago - 3 answers

Best Answer

Chosen by Asker

Most listed company boards require the directors to stand for re-election every X years as a matter of course. In addition any newly appointed directors are usually required to be re-elected at the next AGM. I do not know if 15% of total investors need to vote in favour, but the majority of those who do vote need to vote in favour. I think X=3 but it could be more, or less. It will be in their Memorandum and Articles of Association. Of course it is possible to be a director, and not be on the main board. However, these directors are never subject to share-holder scrutiny and are usually directors of subsidiaries of the listed company.

by Tootsie

4 months ago

Asker's Rating: 

Other Answers

Not really..

by shradha kerketta- 4 months ago

Having an investor director is more of a necessity then legality. If you have great business idea but no money how would you start the show, a lot of expenditure is required before you can approach banks and financial institution to finance your business or before you can come up with your public offering. so you need to have some one with fat wallet and no one will give you money without having a say in the affairs of the project in which you put his money. and yes this is very much common all over the world but exception are always there........

by tripurari jha- 4 months ago