Concept of leave of absence
This query is : Resolved
10 August 2013
What is Leave of absence
11 August 2013
Hi
Leave of absence is not defined under the Companies Act, 1956, it generally give a power to the board to use when they are not intended to attend Board Meeting. This power can not be use for every meeting.
When you will send your intention to the Board for not attending the meeting then this will be submitted in Board Meeting for taking note that Mr.... is given intimation for leave on absence letter for not attending the specific meeting. The Board will take note of this absence and further proceeds the meeting if quorum is present.
Leave of absence is not defined under the Companies Act, 1956, it generally give a power to the board to use when they are not intended to attend Board Meeting. This power can not be use for every meeting.
When you will send your intention to the Board for not attending the meeting then this will be submitted in Board Meeting for taking note that Mr.... is given intimation for leave on absence letter for not attending the specific meeting. The Board will take note of this absence and further proceeds the meeting if quorum is present.
11 August 2013
Director will lose his office of director if he absents himself from three consecutive meetings of the Board of directors or from all meetings for a continuous period of three months, whichever is longer, without obtaining leave of absence.
It was held in the case of Permanand Choudhary v Shukla Devi Mishra (1990) 67 Comp Cas 45 (MP) that where question arises whether a director's office has become vacant by reason of a director absenting himself from Board meetings, the M.P. High Court observed that here we have to go by the provisions of section 283(1)(g) which does not require any such hearing should be given, and the vacation is automatic.
In the case of Bharat Bhushan v H.B. Portfolio Leasing Ltd. (1992) 72 Comp Cas 20 (Del), it has been held that the vacation of office under section 283(1)(g) of the Act is automatic and it does not contemplate the passing of any Board resolution to the effect that the office of the director has been vacated by a particular director nor does it provide for giving the director an opportunity to show cause for that purpose.
When the company alleged that the plaintiff had ceased to be the director as he did not attend three consecutive meetings and the plaintiff claimed that two meetings were not held and notice of third meeting did not reach him and in subsequent general meeting he was not re-elected, subsequent non-re-election was to be taken into account by the Court and plaintiff could not continue as director—[Devi Talkies (P.) Ltd. v. V.R. Parthasarathi Iyengar [1982] 52 Comp Cas 242 (Mad.)].
In order to avoid the vacation of office on account of absence from the meetings of the Board it is necessary that the leave of absence from the Board is obtained by requesting to the Board in writing for the purpose. A Letter by a director asking for leave of absence may be sent in the form given in Appendix 4.
Director will lose his office of director if he absents himself from three consecutive meetings of the Board of directors or from all meetings for a continuous period of three months, whichever is longer, without obtaining leave of absence.
It was held in the case of Permanand Choudhary v Shukla Devi Mishra (1990) 67 Comp Cas 45 (MP) that where question arises whether a director's office has become vacant by reason of a director absenting himself from Board meetings, the M.P. High Court observed that here we have to go by the provisions of section 283(1)(g) which does not require any such hearing should be given, and the vacation is automatic.
In the case of Bharat Bhushan v H.B. Portfolio Leasing Ltd. (1992) 72 Comp Cas 20 (Del), it has been held that the vacation of office under section 283(1)(g) of the Act is automatic and it does not contemplate the passing of any Board resolution to the effect that the office of the director has been vacated by a particular director nor does it provide for giving the director an opportunity to show cause for that purpose.
When the company alleged that the plaintiff had ceased to be the director as he did not attend three consecutive meetings and the plaintiff claimed that two meetings were not held and notice of third meeting did not reach him and in subsequent general meeting he was not re-elected, subsequent non-re-election was to be taken into account by the Court and plaintiff could not continue as director—[Devi Talkies (P.) Ltd. v. V.R. Parthasarathi Iyengar [1982] 52 Comp Cas 242 (Mad.)].
In order to avoid the vacation of office on account of absence from the meetings of the Board it is necessary that the leave of absence from the Board is obtained by requesting to the Board in writing for the purpose. A Letter by a director asking for leave of absence may be sent in the form given in Appendix 4.
11 August 2013
Specimen of letter for seeking leave of absence from attending the Board meeting
To,
The Board of Directors ABC Ltd.
Re: Request for leave of absence from attending the Board meeting
Dear Sir,
I thankfully acknowledge the receipt of notice for the next meeting of the Board of directors of the Company scheduled for XX.XX.XXXX. I, however, regret to inform that I will not be able to attend the
meeting due to pre-decided engagement. I may, therefore, be excused and granted leave of absence from the meeting. I request that this letter be placed before the Board.
Yours faithfully,
xyz
Specimen of letter for seeking leave of absence from attending the Board meeting
To,
The Board of Directors ABC Ltd.
Re: Request for leave of absence from attending the Board meeting
Dear Sir,
I thankfully acknowledge the receipt of notice for the next meeting of the Board of directors of the Company scheduled for XX.XX.XXXX. I, however, regret to inform that I will not be able to attend the
meeting due to pre-decided engagement. I may, therefore, be excused and granted leave of absence from the meeting. I request that this letter be placed before the Board.
Yours faithfully,
xyz
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