Vacation of office by director???

Hi Sumit,

If articles of your Private company made it mandatory for your director to obtain qualification share then as per my understanding section 283(1)(a) is not applicable directly but that would be considered as violation of article and in that case you should follow the mandate given by the article itself for violation of this clause.

Also refer section 283(2A) in case of failure to comply with section 283. Views of other learned members solicited.

Best Regards

Thanks for your reply Mr. Garg.

283. Vacation of office by directors

[(2A) Subject to the provisions of sub-sections (1) and (2), if a person functions as a director when he knows that the office of director held by him has become vacant on account of any of the disqualifications, specified in the several clauses of sub-section (1), he shall be punishable with fine-which may extend to [five thousand rupees] for each day on which he so functions as a director.]
 

You mentioned in your reply that Sec. 283(1)(a) is not applicable directly and one must follow the mandate given in articles.

 How can then the provisions of Sec. 283(2A) be applicable for director of a pvt. ltd. co.(not being a subsidiary of a public co.) for violation of Sec. 283(1)(a)??

What if the articles has made it mandatory for a director to have qualification shares but fails to provide the consequences if the director does not obatin them?? Is the director required to vacate the office??

Kindly give your opinion for the following query also: 

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Thanks & Regards

Hi Sumit,

Sorry for unnecessary mixing of section 283(2A) with my previous reply and creating confusing. Section 283(2A) has nothing to do with with my prevoius reply. It was just to share with you.

Regards