Companies Act

Section 378Q. Vacation Of Office By Directors

¹[378Q. Vacation of office by directors.– (1) The office of the director of a Producer Company shall become vacant if,–

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(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;

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(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;

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(c) he has made a default in repayment of any advances or loans taken from the Producer Company in which he is a director;

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(d) the Producer Company, in which he is a director–

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(i) has not filed the annual accounts and annual return for any continuous three financial years; or

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(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;

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(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;

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(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.

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(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.]

1. Ins. by Act 29 of 2020, s. 52 (w.e.f. 11-2-2021).