Section 581Q(1) in The Companies (Amendment) Act, 2002
(1)The office of the director of a Producer Company shall become vacant if-(a)he is convicted by a court of any offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months;(b)the Producer Company, in which he is a director, has made a default in repayment of any advances or loans taken from any company or institution or any other person and such default continues for ninety days;(c)he has made a default in repayment of any advances or loans taken from the Producer Company in which he is a director;(d)the Producer Company, in which he is a director-(i)has not filed the annual accounts and annual return for any continuous three financial years commencing on or after the 1st day of April, 2002 ; or(ii)has failed to, repay its deposit or withheld price or patronage bonus or interest thereon on due date, or pay dividend and such failure continues for one year or more;(e)default is made in holding election for the office of director, in the Producer Company in which he is a director, in accordance with the provisions of this Act and articles;(f)the annual general meeting or extraordinary general meeting of the Producer Company, in which he is a director, is not called in accordance with the provisions of this Act except due to natural calamity or such other reason.
