Is a Foreign Director required to attend atleast one Board meeting physically in India?
2 Replies
Yogesh Bhandari
(CA FINAL Student)
(429 Points)
Replied 28 November 2011
No, he is not so bound. But nonetheless he will be guilty of breach of duty if he fails to attend the Board meetings with reasonable regularity without sufficient cause being shown for non-attendance. Willful non-attendance on his part may give rise to his liability of ground of negligence. The fewer the
directors, the more onerous is the duty to attend.
Sec. 283(1)(g) should be invoked.
Smriti Dhawan
(Company Secretary )
(347 Points)
Replied 29 November 2011
It is not Compuslory for a Director to attend Board Meeting. Section 284(1)(g) of Companies Act with regard to vacation of office of Director is only applicable when a director is absent 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.
So, Board of Directors should provide leave of absence to that Director and it should be mentioned in the Board Minuted that leave of absence was provided to the Director.
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