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;
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tendered cannot be withdrawn without the company’s or Board’s consent);