283. Vacation of office by directors
(1) [The office of a director shall become vacant if-]
(a) he fails to obtain within the time specified in sub-section (1) of section 270, or at any time thereafter ceases to hold, the share qualification, if any, required of him by the articles of the company;
Kindly clarify whether the above mentioned ground for vacation of office by a director applicable for a private limited co. as well??
Sec. 273 of the companies act says that Sec. 270 shall not be applicable on a private co., unless it is a subsidiary of a public co.
Now Sec. 283 states that if a director is not able to obtain qualification shares within the period specified in Sec. 270(i.e. 2 months from the date of appointment), then he shall vacate the office of director.
If articles of a pvt. ltd co.(not being a subsidiary of a public co.) states that a director must obtain qualifiaction shares within 3 months of appointment and fails to mention any consequences in case the director fails to do that.
Then, are the provisions of Sec. 283 applicable on him or are there any other consequences??
Pls reply its urgent.
CAclubindia
