Mr. Sunil Goyal, a director of XYZ Limited wants to go on foreign trip. He wants to assign his office to the Vice President of the company. Mr. Sunil Goyal seeks your advise whether he can do so. Referring to the provisi
CS Executive · Company Law · PYQS · June 2017
Mr. Sunil Goyal, a director of XYZ Limited wants to go on foreign trip. He wants to assign his office to the Vice President of the company. Mr. Sunil Goyal seeks your advise whether he can do so. Referring to the provisions of the Companies Act, 2013 advise him in the matter.
Answer & Explanation:
In accordance with the provisions of the Companies Act, 2013, as contained in section 166(6), a director of a company shall not assign his office. Any assignment so made shall be void. Therefore, Mr. Sunil Goyal, the director of the company who wants to go on a foreign trip cannot assign his office to the Vice President. He is advised accordingly not to assign his office. However, for the purpose of quorum and smooth function of Board, Alternate director may be appointed under the provisions of section 161 of Companies Act, 2013.
Topics: Company Law
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