Automatic vacation as director:
A person will cease to be a director in a public limited or private limited company if:
- he fails to obtain qualification shares if any, within two months of appointment. (This may not occur in a pure private limited company).
- he has been found of unsound mind;
- he applies to be declared as an insolvent;
- he has been adjudged an insolvent;
- he is convicted by a court of an offence involving moral turpitude and sentenced to imprisonment for at least six months;
- he has failed to pay calls in respect of the shares in the company held by him, whether alone or jointly, within six months from the last day fixed for such payment unless the central government has removed the said disqualification;
- he absents himself from three consecutive meetings of the board or from all meetings for a continuous period of three months, whichever is longer, without obtaining leave of absence;
- he or a firm in which he is partner or a private company in which he is a director obtains a loan from the company in contravention of section 295;
- he fails to give disclosure in terms of section 299;
- he is removed under section 284;
- he, having been appointed as director by virtue of holding an office or other employment in the company, ceases to hold such office or employment in the company.