Section 378Q: Vacation of office by directors
This section outlines the circumstances under which the office of a director of a Producer Company becomes vacant.
The section, clause by clause
What the section says
In plain terms
(1)The office of the director of a Producer Company shall become vacant if,—
The office of a director of a Producer Company becomes vacant if they are convicted of an offence involving moral turpitude and sentenced to at least six months imprisonment, or if the company or the director defaults on loans or repayments, or if the company fails to file accounts or pay dividends, or if elections or meetings are not held as required.
(1)(a)he is convicted by a court of any offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months;
(1)(b)the Producer Company, in which he is a director, has made a default in repayment of any advances or loans taken from any company or institution or any other person and such default continues for ninety days;
(1)(c)he has made a default in repayment of any advances or loans taken from the Producer Company in which he is a director;
(1)(d)the Producer Company, in which he is a director—
(1)(d)(i)has not filed the annual accounts and annual return for any continuous three financial years; or
(1)(d)(ii)has failed to, repay its deposit or withheld price or patronage bonus or interest thereon on due date, or pay dividend and such failure continues for one year or more;
(1)(e)default is made in holding election for the office of director, in the Producer Company in which he is a director, in accordance with the provisions of this Act and articles;
(1)(f)the annual general meeting or extraordinary general meeting of the Producer Company, in which he is a director, is not called in accordance with the provisions of this Act except due to natural calamity or such other reason.
(2)The provisions of sub-section (1) shall, as far as may be, apply to the director of a Producer Institution which is a member of a Producer Company.
These rules also apply to directors of a Producer Institution that is a member of a Producer Company.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Referred to by
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.