Hi,
If a director doesnt attend the attend 3 consecutive board meetings or all the board meetings suring continous period of 3 months which ever is longer has to vacate the office
1.please explain the above with an example
2.what is meant by the term longer?
Hello,
Example 1-
A company held board meeting on 1st Jan, 1st Feb, and 28th Feb. One of the director failed to attend all the three meetings, he won’t be dis-qualified based on not attending three consecutive board meetings, you would need to calculate three months from 1st Jan, as it is the date of the first meeting he failed to attend.
Hence in this example he vacates the office from 31st March not 28th Feb, taking into consideration longer of the two.
Example 2-
A company holds a board meeting on 1st Jan, 30th June and 31st December. Director fails to attend any of these meetings. He would be disqualified once he fails to attend the meeting held on 31st December, here the clause of three consecutive meetings would apply.
Please note that this examples are subjective, meetings are held subject to section 285 and clause in listing agreement.
Also if a director gives a leave of absence it won't be applicable.
Thanks,
Regards
JJ
Basic idea behind writing the word Longer in section 283 is to give extra time to the director in his office brfore the actual happening of the default(absense in office).
CAclubindia
