Beauty Ltd. wants to include additional grounds for vacation of office of directors in the Articles of Association of the company. Can the company do so under the provisions of the Companies Act, 2013? What will be your
CS Executive · Company Law · PYQS · December 2020
Beauty Ltd. wants to include additional grounds for vacation of office of directors in the Articles of Association of the company. Can the company do so under the provisions of the Companies Act, 2013? What will be your answer if this company is private Ltd.?
Answer & Explanation:
No, it is not allowed , for a Public Limited Company under the provisions of Section 167 of the Companies Act, 2013, to amend its Article of Association to include additional grounds for vacation of office of Directors over and above what is specifically prescribed under Sec 167(1) of the Companies Act, 2013. However, if Beauty Ltd had been a Private Limited Company then as provided under Sec 167(4) of the Companies Act, 2013, it may, by its Articles, provide any other ground for the vacation of the office of a director in addition to provisions mentioned in section 167(1) of the Companies Act, 2013.
Topics: Appointment and Qualification of Directors
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