Section 171: Vacation of office by the directors

171. Vacation of office by the directors.—(1) A director shall ipso facto cease to hold office if— (a) he becomes ineligible to be appointed as a director on any one or more of the grounds enumerated in section 153; (b) he absents himself from three consecutive meetings of the board without seeking leave of absence; (c) he or any firm of which he is a partner or any private company of which he is a director— (i) without the sanction of the company in general meeting accepts or holds any office of profit under the company other than that of chief executive or a legal or technical adviser; or (ii) accepts a loan or guarantee from the company in contravention of section 182; (2) Nothing contained in sub-section (l) shall be deemed to preclude a company from providing by its articles that the office of director shall be vacated on any grounds additional to those specified in that sub-section.

Effective date: 2017-05-30

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