08 October 2009
Can you give me a brief description about sec 312 with an explanation to the court’s decision in Oriental Metal pressing Works private limited Vs. BK Thakoor (A.I.R) 1960 Bom and Supreme courts reversal of above ruling vide A.I.R 1961 S.C. 573
In the case of Oriental Metal Pressing Pvt. Ltd. Vs. B.K. Thakoor the court observed that a director can not assign "his" office. The word "his" used in the section indicates that the prohibition applies only when an office held by a director is assigned to any other person.
For example where a director dies, the office held by him becomes vacant and therefore such office can not be assigned to anybody. Therefore appointment of a new person through will of deceased person in such office does not amount to an assignment under section 312.
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