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CS Executive · Company Law and Practice · Directors

Mr. Sameer Joshi, a director of Ganga Foods Ltd, is convicted by a court of an offence and sentenced to imprisonment for eight months. He files an appeal on the 20th day after conviction. What is the position regarding vacation of his office?

His office is not vacated until seven days after his appeal is disposed of. Conviction with imprisonment of six months or more is a ground for vacation, but the proviso protects the director where an appeal is preferred within thirty days.

  1. AOffice is vacated immediately on conviction, because the sentence is above six months
  2. BOffice is not vacated until seven days after the appeal is disposed of, since the appeal was filed within thirty daysCorrect
  3. COffice is vacated on the thirtieth day regardless of any appeal
  4. DOffice is not vacated because the offence did not involve moral turpitude

Explanation

Section 167(1)(f) covers conviction with imprisonment of not less than six months, whether or not moral turpitude is involved. The proviso says the office is not vacated for thirty days, and if an appeal is filed within those thirty days, until seven days after the appeal is disposed of. The option on immediate vacation ignores this proviso.

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