Vacation of office is the termination of a director’s appointment. A director’s office can be vacated in a number of ways, including:
- Resignation.
- Removal.
- Disqualification.
- Death.
- Insolvency.
- Merger or acquisition.
- Amalgamation.
- Winding up.
What are the consequences of vacation of office?
The consequences of vacation of office vary depending on the circumstances. However, generally, the director will cease to have any authority to act on behalf of the company. They will also lose their right to participate in the company’s management and decision-making process.
MCQs on vacation of office by directors
- A director can vacate his/her office by:
- Resigning.
- Being removed.
- Being disqualified.
- All of the above.
Answer: The correct answer is (d). A director can vacate his/her office by resigning, being removed, or being disqualified.
- A director can be removed from office by:
- The shareholders.
- The board of directors.
- The Central Government.
- All of the above.
Answer: The correct answer is (d). A director can be removed from office by the shareholders, the board of directors, or the Central Government.
- A director can be disqualified from office if he/she:
- Is convicted of an offence involving moral turpitude.
- Is an undischarged insolvent.
- Is of unsound mind.
- All of the above.
Answer: The correct answer is (d). A director can be disqualified from office if he/she is convicted of an offence involving moral turpitude, is an undischarged insolvent, or is of unsound mind.