Intermittent vacancy Vs casual vacanvy

Under the Companies Act, 2013, the terms "casual vacancy" and "intermittent vacancy" refer to different scenarios regarding the appointment of directors.

1. Casual Vacancy

• Definition: A casual vacancy occurs when the office of a director who was appointed by the company in a general meeting is vacated before the expiry of their term in the normal course (e.g., due to death, resignation, or disqualification).

• Legal Provision: Governed by Section 161(4) of the Companies Act, 2013.

• Filling the Vacancy: The Board of Directors can fill this vacancy at a Board meeting, subject to the Articles of Association of the company.

• Tenure: The person appointed to fill a casual vacancy holds office only up to the date the original director would have held it if the vacancy had not occurred.

2. Intermittent Vacancy

• Definition: This term is specific to Independent Directors. It refers to a vacancy that arises in the composition of independent directors that causes the company to fall below the required statutory limit of independent directors.

• Legal Provision: Governed by Rule 4(iii) of the Companies (Appointment and Qualification of Directors) Rules, 2014.

• Filling the Vacancy: The Board must fill the vacancy at the earliest, but it must be filled no later than the immediate next Board meeting or three months from the date of such vacancy, whichever is later.

Summary of Differences

Summary: A casual vacancy relates to any director appointed at a general meeting leaving office prematurely (Section 161(4)), while an intermittent vacancy is a specific compliance provision for Independent Directors to ensure the board maintains its required composition within a set timeframe (Rule 4).