After a certain period, every law becomes out-dated and changes need to be brought about based on present day situations. When the Companies Act 1956 was passed, the changes of the future couldn’t be foreseen by the makers of the Act. Certain amendments over the past few years created some difficulties for companies to perform in the significantly changed scenario. The new Companies Act 2013 was introduced by the Parliament of India that has enabled for the smooth functioning of companies by regulating the company incorporation, its responsibilities, directors/secretaries along with the dissolution of the company.
Let’s look at Section 167 of Companies Act 2013 that deals with the vacation of office of the director of company.
1) The office of a director shall become vacant in case:
2) If a person, functions as a director even when he knows that the office of director
held by him has become vacant on account of any of the disqualifications specified in subsection