Decide if the office of Mr. Satish Nirankar, Director of Royal Ltd. shall be vacated in the following circumstances: (ii) he is convicted by a court of an offence, not involving any moral turpitude and is sentenced for i
CS Professional · Advanced Company Law and Practice · PYQS · June 2017
Decide if the office of Mr. Satish Nirankar, Director of Royal Ltd. shall be vacated in the following circumstances: (ii) he is convicted by a court of an offence, not involving any moral turpitude and is sentenced for imprisonment for one year but immediately files an appeal in higher Court against the order of the lower Court.
Answer & Explanation:
Section 167 of the Companies Act, 2013 provides that, among other grounds, the office of a director shall become vacant in case: he is convicted by a court of any offence, whether involving moral turpitude or otherwise and sentenced in respect thereof to imprisonment for not less than six months and the vacancy is irrespective of the fact that he has filed an appeal against the order of such court. [Section 167(1)(f) read with its proviso] Case (ii): When he is convicted by a court for more than six months (1 year in this case), his office shall be vacated even though the offence does not involve moral turpitude and even if he has filed an appeal against the order of the lower court in the higher court.
Topics: Directors
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