Summary
Cummins Inc. (CMI) filed an 8-K on February 13, 2019, reporting a change to its corporate governance. The Board of Directors approved an amendment to the company's By-Laws, effective February 12, 2019, which increases the mandatory retirement age for directors from seventy-two to seventy-four years of age. This change means that directors can now serve until they reach the age of seventy-four. While a director will not be eligible for re-election once they turn seventy-four, they can complete their current term of office. This amendment allows for greater flexibility in retaining experienced board members, potentially benefiting from their continued guidance and expertise for a longer period.
Key Highlights
- 1Cummins Inc. has amended its By-Laws to increase the mandatory retirement age for directors.
- 2The retirement age for directors has been raised from 72 to 74 years old.
- 3This change became effective upon Board approval on February 12, 2019.
- 4Directors who reach age 74 during their term can complete that term but are not eligible for re-election.
- 5The amendment aims to retain experienced directors for longer periods.
- 6The filing incorporates the Amendment and the updated By-Laws as exhibits.
Frequently Asked Questions
The primary change is the amendment to Cummins Inc.'s By-Laws to increase the mandatory retirement age for directors from 72 to 74 years of age.
The amendment became effective upon the Board of Directors' approval on February 12, 2019.
No, a director cannot be re-elected once they reach the age of 74. However, they are eligible to remain on the Board for the remainder of their current term if they attain the age of 74 during that term.
This change allows Cummins to retain experienced board members for a longer duration, potentially benefiting from their continued expertise and governance oversight.