Deemed removal of a director
Querist :
Anonymous
(Querist) 01 December 2011
This query is : Resolved
Is there any provision of company law that deals with deemed removal of a director?
Advocate. Arunagiri
(Expert) 01 December 2011
When he does not possess the required share qualification within the time limit, he will be deemed as removed.
When is disqualified for being a director by any order of the court, he will be deemed as removed.
Guest
(Expert) 01 December 2011
The director of a company is deemed to have been removed on the following grounds:
(1) he fails to obtain within the time specified in sub-section (1) of section 270, or at any time thereafter ceases to hold, the share qualification, if any, required of him by the articles of the company;
(2) he is found to be of unsound mind by a Court of competent jurisdiction;
(3) he applies to be adjudicated an insolvent;
(4) he is adjudged an insolvent;
(5) he is convicted by a Court of any offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months;
(6) he fails to pay any call in respect of shares of the company held by him, whether alone or jointly with others, within six months from the last date fixed for the payment of the call unless the Central Government has, by notification in the Official Gazette, removed the disqualification incurred by such failure;
(7) he absents himself from three consecutive meetings of the Board of directors, or from all meetings of the Board for a continuous period of three months, whichever is longer, without obtaining leave of absence from the Board;
(8) he (whether by himself or by any person for his benefit or on his account), or any firm in which] he is a partner or any private company of which he is a director, accepts a loan, or any guarantee or security for a loan, from the company in contravention of section 295;
(9) he acts in contravention of section 299;
(10) he becomes disqualified by an order of Court under section 203;
(11) having been appointed a director by virtue of his holding any office or other employment in the company he ceases to hold such office or other employment in the company.
Raj Kumar Makkad
(Expert) 01 December 2011
There are no other grounds of deemed removal of a director of a company other than already described by Dhingra ji.
Sailesh Kumar Shah
(Expert) 01 December 2011
I would like to addition in reply of Shri PS Dhingra.
12.he is removed under section 284
The disqualifications stated under 4,5,10 shall not take effect:—
(a) for thirty days from the date of the adjudication, sentence or order;
(b) where an appeal or petition is preferred within the 30 days aforesaid against the adjudication, sentence or conviction resulting in the sentence, or order until the expiry of 7 days from the date on which such appeal or petition is disposed of; or
(c) where within the 7 days aforesaid, any further appeal or petition is preferred in respect of the adjudication, sentence, conviction, or order, and the appeal or petition, if allowed, would result in the removal of the disqualification, until such further appeal or petition is disposed of
Sailesh Kumar Shah
(Expert) 01 December 2011
Deemed removal of directors does not apply to the directors appointed under section 408.
Rajeev Kumar
(Expert) 01 December 2011
Agree with Dhingra JI
Sailesh Kumar Shah
(Expert) 01 December 2011
Mr. Rajeev
is my opinion wrong?
please reply.
Thanks
with Regards,
