Question
According to Section 167 of the Companies Act, 2013, the
office of a director shall become vacant in which of the following circumstances? (I) He incurs any of the disqualifications specified in Section 164. (II) He fails to disclose his interest in any contract or arrangement in violation of Section 184. (III) He absents himself from all the meetings of the Board of Directors held during a period of three months with or without seeking leave of absence of the Board.Solution
Section 167. Vacation of office of director (1) The office of a director shall become vacant in case— (a) he incurs any of the disqualifications specified in section 164; (b) he absents himself from all the meetings of the Board of Directors held during a period of twelve months with or without seeking leave of absence of the Board; (c) he acts in contravention of the provisions of section 184 relating to entering into contracts or arrangements in which he is directly or indirectly interested; (d) he fails to disclose his interest in any contract or arrangement in which he is directly or indirectly interested, in contravention of the provisions of section 184; (e) he becomes disqualified by an order of a court or the Tribunal ; (f) 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: Note - Section 167(1)(b) specifies 12 months of absence, not 3 months.
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