Rule 15.05(3)(c) of the ACE LR states that the office of a director shall become vacant if the director is absent from more than 50% of the total board of directors' meetings held during a financial year. If Mr A is appointed as a director of B Bhd, a listed corporation, mid-way through a financial year, how does Mr A compute the minimum number of board meetings that he must attend for that financial year?
The computation of the minimum number of board meetings to be attended in the financial year will take into account only the meetings that were held on or after the appointment of the director in question. Therefore, if B Bhd's financial year end is December 2009, Mr A is appointed on 15 August 2009 and the number of board meetings held after his appointment is 6, Mr A must attend at least 3 of the board meetings.