Amendment of articles so as to provide for appointment of directors by another company to make the company as its subsidiary
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Mandatory director retirement and appointment rules prevent articles granting another company power to appoint directors and create a subsidiary.
Amendments purporting to let another company appoint directors to make a company its subsidiary conflict with sections 255(1), 256(1) and 257, which mandate that at least two thirds of directors be subject to retirement by rotation, be appointed by members at the general meeting, and that one third retire at each annual general meeting; section 257 is mandatory and such articles or special resolutions are invalid under section 9.