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5.
Vacation of office
A
person appointed as small shareholders’ director
shall have to vacate the office if-
-
such person so elected, as director of small shareholders
ceased to be a small shareholders’ director
on and from such date on which he ceased to be a
small shareholder;
-
he has been rendered disqualified by virtue of sub-rule
(1) of the above rule.
-
he fails to pay any call in respect of shares of
the company held by him, whether alone or jointly
with others, within six months from the last date
fixed for the payment of the call;
-
he absents himself from three consecutive meetings
of the Board of directors, or from all meetings
of the Board for a continuous period of three months,
whichever is longer, without obtaining leave of
absence from the Board;
-
he is partner of any private company of which he
is a director, accepts a loan, or any guarantee
or security for a loan, from the company in contravention
of section 295;
-
he acts in contravention of section 299;
-
he becomes disqualified by an order of Court under
section 203;
-
he is removed in pursuance of section 284.
6.
Restriction on number of directorship
No
person shall hold office at the same time as small shareholders’
director in more than two companies.
[Issued
by the Ministry of Law, Justice and Company Affairs
(Department of Company Affairs) vide F.No. 1/19/2000-CL.V;
Published in the Gazette of India Extraordinary Part-II,
Section 3, Sub-section (I) dated 9.3.2001].
Companies
(Passing of the Resolution by Postal Ballot) rules,
2001.
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