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Disqualification of directors

CA Suraj Prasad Shaw (Chartered Accountant) (504 Points)

11 June 2011

Whether Director of a public company will be disqualified if he does not attend any board meeting during the financial year?

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8 Replies

Arvind Sharma (ACA) (1432 Points)
Replied 11 June 2011

Yes...

u/s 274(1)(g) a Director will be disqualified for 5 Years to be a director of any other Public Company... (he can be Director of Pvt Com.) if he failed to attained consecutive 3 Board Meeting or board meeting held between 3 months.

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rachit jain (chartered accountant ) (635 Points)
Replied 11 June 2011

disqualification will arise at the time of appointment and vacation of office happens after appointment. not attending of board meeting will not count for disqualification as per sec 274.however he has to vacate his office if he absent from 3 consecutive board meeting or for all board meeting for a continues period of 3 month whichever is longer without obtaining leave of absent from board (absent under this sec scope for legal and medical impossibility)

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Aparna Raja K.C (Student) (520 Points)
Replied 11 June 2011

Originally posted by : rachit jain
	disqualification will arise at the time of appointment and vacation of office happens after appointment. not attending of board meeting will not count for disqualification as per sec 274.however he has to vacate his office if he absent from 3 consecutive board meeting or for all board meeting for a continues period of 3 month whichever is longer without obtaining leave of absent from board (absent under this sec scope for legal and medical impossibility)

Good point raised :) Agree

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Arvind Sharma (ACA) (1432 Points)
Replied 11 June 2011

Originally posted by : Arvind
	Yes... u/s 274(1)(g) a Director will be disqualified for 5 Years to be a director of any other Public Company... (he can be Director of Pvt Com.) if he failed to attained consecutive 3 Board Meeting or board meeting held between 3 months.

Sorry for the wrong reply.... :(

There is no disqualification given for that... But 283(1)(g) explained VACATION (not disqualification) from office... The same is Automatice vacation and not require any resolution...

Rachit is correct....

Thanks for correcting me.....

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CA Suraj Prasad Shaw (Chartered Accountant) (504 Points)
Replied 13 June 2011

Please clarify if director had obtained leave of absence from all the board meeting during the financial year, then also it will be a vacation of office of Director.

Rajnikant Vadigoppula (CA, CS And CMA Final) (919 Points)
Replied 13 June 2011

yes i agree with rachit and aparna

Arvind Sharma (ACA) (1432 Points)
Replied 13 June 2011

Originally posted by : Suraj Prasad Shaw
	Please clarify if director had obtained leave of absence from all the board meeting during the financial year, then also it will be a vacation of office of Director.

No...

Sec 283 is very clear about this. If director is absent with leave, for any period, he will not be liable for vacation of office...

Find attached file.....

Attached File : 200449 739210 sec 283 of com act.doc downloaded: 264 times

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S.ASWATH (Manager) (704 Points)
Replied 25 June 2012

Originally posted by : Arvind Sharma
	Originally posted by : Suraj Prasad Shaw Please clarify if director had obtained leave of absence from all the board meeting during the financial year, then also it will be a vacation of office of Director. No... Sec 283 is very clear about this. If director is absent with leave, for any period, he will not be liable for vacation of office... Find attached file.....