Five Board meetings were held in Asha Ltd. during the period from January to June in the calendar year 2016. Rajeev, an additional director, attended none of these meetings. For the first two meetings he sought leave of

CS Executive · Company Law · PYQS · December 2016
Five Board meetings were held in Asha Ltd. during the period from January to June in the calendar year 2016. Rajeev, an additional director, attended none of these meetings. For the first two meetings he sought leave of absence from the Board but did not inform the Board for the remaining three meetings. Examining the provisions of the Companies Act, 2013, decide whether he is disqualified to act as a director.

Answer & Explanation:

Section 167(1)(b) states that the office of a director shall be vacated if he absents himself from all the meetings of the Board of Directors held during a period of 12 months with or without seeking leave of absence of the Board. Mr. Rajeev absented from all the meetings of the Board for 6 months by seeking leave of absence in first two and not seeking leave of absence in last three. It is not that he did not attend all the meetings for a period of 12 months. Thus, his office does not become vacant and he can continue to be a director on the Board of the Company. Disqualification of Directors is dealt with under section 164 of the Companies Act, 2013 and is different from vacation of the office of directors under section 167.

Topics: Directors

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