Vacaton of office as director under section 167

Co Act 2013 165 views 3 replies

Guest

Hello Experts,

Section 167 states the circumstances under which a director shall vacate his office. One among the situation is his failure to disclose his interest in any contract in which such director is interested. On account of such failure, whether he is liable to vacate his office of that company only or he should vacate the office of all companies in which he is a director. If he is a director in 5 companies in total, whether from 5 companies he should vacate? Kindly clarify

Thanks in advance.

Replies (3)

saurabh gupta

31 Points Joined March 2019

Yes except u/s 164(2) where he will have to vacate all the offices except the office which have failed to comply the requirements stated therein. in all other he will have to vacate all the offices

Chirag

Professional

1979 Points Joined December 2017

No, Non disclosure of interest in any contract or arrangement entered by the company, then his office as director become vacant only in the company in which he contravened 184.Its contrary 167(1) First proviso where on getting disqualification u/s164 then he will be deemed to vacate office from all companies except in defaulting one.

Harish choursiya

Student cs professional

249 Points Joined July 2016

That person who fails to disclose his interest directly or indirectly in the contract and arrangement entered into with the company, he shall have to vacate from the position of directorship only from the concerned in which such default had occurred not from the others company where he holds the position of director.

Another aspect for the vacation from the other company in which no default has occurred for the filing of financial, annual return or default to debt repayment..... As mention in section 164(2)clause a and b read with proviso to section 167(1)(a).