Reference: Sec 161(2) of Companies Act, 2013 and Qu 1(a)(ii) of MTP March 2019
Doubt Text: What if the Original Director returns to India and leaves the next day.
The law is silent, but ICAI became the SC Judge here and said that the Alternate Dr will need not vacate his office.
How we’re supposed to know the meaning of “Temporary Period” because the law is silent. And what if this case would have gone to a real court (and not ICAI BoS). Would the judge ask the alternate Dr to vacate?
Usually you should leave because 161(2) ki interpretation says that alternate director shall hold its position until the original director returns back to India now the return back has not be defined whether return back is temporary or sort of permanent.
You main answer should be that you will have to to resign because the original director has returned back to India even if it’s for one day even if it’s temporary but it at the same time you should mention that case law that has been mentioned in the MTP .
you do not have to remember the name the case law, if the name is easy then please remember it if the name is not easy then look for one keyword like Solomon or whatever the name which is easy in the case law and put that in the the answer stating that as per the court in the case law of _____, alternate director can hold its office even if the original director has returned back temporarily for one day and left the next day.
The problem is that ICAI loves ambiguity if you’ll see their answers it differs in the MTP as well if you’ll see some answers of previous MTP you would find a different answer for the same question in different different MTPs.
So, my advice to you is to do it this way that’s the best possible answer instead of saying directly that you should hold or directly stating that you have to resign do not say directly this play diplomatically.
you have stated both the viewpoints you have stated The one view point that was earlier followed in one of the MTPs, you have also stated the recent viewpoint that has been followed in the latest MTP.
Hope it helps
Thank you so much. 🙂
Hey Qurious
Please revail your name 🤔🤔
In this case we will have to interpret the law. Temporary period can even be 1 or 2 day to attend any weeding or anything. In such scanerio do you really think alternate director should vacate it’s office?
The answer will differ on the basic of circumstances.
Now if you want to answer in exam and the question is silent about circumstances please mention both the circumstances and in respective case whether alternate director will vacate or not.
Thank you so much, sir.
Also, yes I’ll reveal my name, but not right now. (I’ll inform you about the same in advance)
And if you still want to know, get Admin Access from Sanjay Sir, and guess what, you can check all my details there. 😉