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    Question

    As per section 167 of the Companies Act, 2013, the

    office of a director shall become vacant in which of the following cases? (a) Disqualified under section 164 (b) Disqualified by a Court or the Tribunal (c)  Attaining age of 70 (d)  Absents himself from more than 50%of Board Meetings
    A A and B Correct Answer Incorrect Answer
    B A, B and C Correct Answer Incorrect Answer
    C A, B and D Correct Answer Incorrect Answer
    D B, C and D Correct Answer Incorrect Answer

    Solution

    Section 167 lays down that the office of a director shall become vacant in case: a) Incurs any of the disqualifications specified in section 164; b)  Absents 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) 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)  Fails to disclose his/ her interest in any contract or arrangement in which is directly or indirectly interested e)Becomes disqualified by an order of a court or the Tribunal; f) 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 6 months; Provided that the office shall be vacated by the director even if he has filed an appeal against the order of such court; g)  Is removed in pursuance of the provisions of this Act; h) Having been appointed a director by virtue of his/ her holding any office or other employment in the holding, subsidiary or associate company, ceases to hold such office or other employment in that company.

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