Dear Fellows,
As per companies Act 2013, if a Director doesnot attend atleast one Board meeting Physically in 12 months from the date of his appointment, his seat stands to be vacate.
My question is if Director is NRI and unable to attend any meeting, can he appoint ALternate Director so that his seats doesnot stand for vacation or what are the other way to meet this requirement.
Attending meeting through video conference is not counted as attending physically?
Regards
Dear Swati,
According to Section 167 (1) (b) of Companies Act, 2013, the office of a Director shall become vacant if he absents himself from all the meetings of the Board of Directors held during period of 12 months. This provision do not specify that the Director should attend meeting in person, therefore it is suggested to have at least one meeting of Board by way of Video Conferencing if a company has NRI Directors on its Board. So that provision of Section 167 (1) (b) are complied with.
Thanks & regards,
CS Rahul Kabra
Shyam Joshi & Associates
Pune
B.Com
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Vardhaman Group of India
Pimpri Chinchwad
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Karia Overseas
Ahmedabad
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CAclubindia
