Chapter XXI — A PRODUCER COMPANIES

Section 378QVacation of office by directors

Section 378Q: Vacation of office by directors

378Q. Vacation of office by directors

378Q. Vacation of office by directors.— (1) The office of the director of a Producer Company shall become vacant if,—

(a)

he is convicted by a court of any offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months;

(b)

the Producer Company, in which he is a director, has made a default in repayment of any advances or loans taken from any company or institution or any other person and such default continues for ninety days;

(c)

he has made a default in repayment of any advances or loans taken from the Producer Company in which he is a director;

(d)

the Producer Company, in which he is a director—

(i)

has not filed the annual accounts and annual return for any continuous three financial years; or

(ii)

has failed to, repay its deposit or withheld price or patronage bonus or interest thereon on due date, or pay dividend and such failure continues for one year or more;

(e)

default is made in holding election for the office of director, in the Producer Company in which he is a director, in accordance with the provisions of this Act and articles;

(f)

the annual general meeting or extraordinary general meeting of the Producer Company, in which he is a director, is not called in accordance with the provisions of this Act except due to natural calamity or such other reason.

(2)

The provisions of sub-section (1) shall, as far as may be, apply to the director of a Producer Institution which is a member of a Producer Company.

Amendment notes (1)
  1. Ins w.e.f. 11-2-2021 . Ins. by Act 29 of 2020, s. 52 (w.e.f. 11-2-2021).