Sunday, May 11, 2014

Vacation of director’s office

Vacation of director’s office:
The office of the director shall become vacant if:
1) He fails to obtain within 2 months, or at any time thereafter ceases to hold the share qualification, if any required of him by the articles of the company;
2) He is found to be of unsound mind by a Court of competent jurisdiction;
3) He applies to be adjudicated insolvent
4) He is adjudged an insolvent;
5) He is convicted by a Court for any offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than 6 months;
6) He fails to pay any call in respect of shares of the company held by him, whether alone or jointly with others within 6 months from the last date fixed for the payment for the call unless the Central Government has, by notification in the Official Gazette removed the disqualification incurred by such failure;
7) He absents himself from 3 consecutive meetings of the Board of directors or from all meetings of the Board for a continuous period of 3 months, whichever is longer without obtaining leave of absence from the Board;
8) He or any firm in which he is a partner or any private company, of which he is director, accepts a loan. Or any guarantee or a loan, from the company without the approval of the Central Government;

9) He fails to make disclosures to the Board in respect of contracts in which he is interested;
he becomes disqualified by an order of court for being convicted of an offence in respect of the promotion, formation or management of a company, or in the course of winding up he is guilty of fraud or misfeasance;
10) He is removed before the expiry of period of his office.
11) Having been appointed a director by virtue of his holding any office or other employment in the company he ceases to hold such office or other employment in the company;
12) He resigns from his office (resignation tendered cannot be withdrawn without the company’s or Board’s consent);