Section 378Q — Vacation of office by directors

(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 Produce r 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;
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.
(2) The provisions of sub -section ( 1) shall, as far as may be, apply to the director of a Producer