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Explain the following Term/Concept: Casual vacancy of a Director.

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Question

Explain the following Term/Concept:

Casual vacancy of a Director.

Short/Brief Note
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Solution

(1) Casual vacancy of a director may arise due to different reasons such as death, permanent or temporary disablement, sickness, and resignation, etc. of a director. The Board of directors has to fill up the casual vacancy by appointing additional or opted directors at the Board meeting.

(2) The appointment of additional or co-opted directors is valid only up to the time of the vacating director’s incomplete term.

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Chapter 6: Directors and Key Managerial personnel of a company - EXERCISES [Page 100]

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Balbharati Secretarial Practice [English] Standard 11 Maharashtra State Board
Chapter 6 Directors and Key Managerial personnel of a company
EXERCISES | Q 2. 7) | Page 100

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