Section 167 - Vacation of office of director

Director office vacancy follows disqualification, prolonged absence, conflicts of interest, conviction, removal, or cessation of qualifying employment.

Section 167 prescribes grounds and consequences for vacation of office by a company director, including specified disqualifications, twelve months' absence from board meetings, entering into or failing to disclose interested contracts, court or Tribunal disqualification, qualifying criminal conviction, removal under the Act, and cessation of the qualifying office; it also delays vacancy while timely appeals are pending, penalises knowingly acting after vacancy, allows promoter or Central Government appointments if all directors vacate, and permits private companies to add grounds in their articles.