SAM is a Director of a Producer Company. The said Producer Company did not file Annual Accounts and Annual Return for the FY 2013-14, 2014-15 and 2016-17. Comment whether the said director will vacate his office under th

According to Section 581Q(1)(d)(a) of the Companies Act, 1956 as applicable to producer companies, The office of the director of a Producer Company shall become vacant if the Producer Company, in which he is a director has not filed the annual accounts and annual return for any continuous three financial years commencing on or after the 1st day of April, 2002 The condition of three consecutive years has not be satisfy. Therefore the office of the director shall not be vacated. Sec 581O of the Companies Act, 1956 provides that, every Producer Company shall have minimum of five Directors and not more than 15 Directors. The provision of the Articles in the given case is inconsistence with the provision of the Act, and is ultra vires the Act.