AGE LIMIT FOR DIRECTORS

New Zealand Herald, Volume LXXI, Issue 21910, 20 September 1934, Page 15

AGE LIMIT FOR DIRECTORS

Sir, —How often do we see the -following in the report covering the notice of a general meeting of a public company: —"Directors Brown and Jones retire in accordance with rule X and, being eligible, offer themselves for reelection."? In 99 cases out of 100 it is a foregone conclusion that Messrs. Brown and Jones will be re-elected. I am not cavilling at the methods bv which directors are appointed, although for various reasons it is very much harder for an ordinary shareholder to become a director than for a sitting director to be re-elected. What does not seem to mo to be right is that old men who are mentally and physically past their prime should continue to be re-elected. In many cases elderly directors are not actively engaged in any other occupation and must necessarily become antiquated in their business understanding and outlook. I think when directors of any public enterprise reach a certain age they should automatically retire and make room for younger, more active and up-to-date business men. As I have been having an argument as to what the above retiring age should be I would be pleased if you would publish this letter in the hope that I may be able to get the opinion of some other of your readers on - this question./ Disgusted Shareholder.