in approved securities, fixed deposits, units and bonds issued by the Central or State Governments or cooperative societies or scheduled bank; or (b) in a co-operative bank, state co-operative bank, co-operative land development bank or central co-operative bank; or (c) with any other scheduled bank; or (d) in any of the securities specified in section 20 of the Indian Trusts Act, 1882; or (e) in the shares or securities of any other multi-state co-operative society or any co-operative society; or (f) in the shares, securities or assets of a public financial institutions specified under section 4A of the Companies Act, 1956. (b) There is no provision in the Companies Act, 1956 relating to resignation from his office by a director. If there is any provision in the articles giving the right to a director to resign at any time, the resignation will take effect without any need for its acceptance by the Board of Directors or the company in general meeting. In absence of a specific provision in the articles of association, a director can resign without being required to give reasonable notice. In T. Murari Vs. State [(1976) 46 Comp. Cas. 613] the Madras High Court held that even in the absence of a provision in respect of resignation under the Companies Act, 1956 or under the articles of association of the company, the resignation tendered by a director or a managing director unequivocally in writing will take effect from the time when such resignation is tendered. The said judgement was followed by the same court in the case of S.S. Lakshman Pillai Vs. ROC (1997) 47 Comp. Cas. 652. In a recent judgement in the case of Mother Care (India) Ltd Vs. Prof. Ramaswamy P. Aiyar [(2004) 51 SCL 243] the Karnataka High Court observed that as the appointment of a director is not a bilateral character, the question of acceptance of the request to relinquish the office would arise and filing of Form No.32 in terms of section 303(2) of the Companies Act, 1956 is only a consequential act to be performed by the company in obedience of the statutory provision, but it is not an act to be complied with in order to make a resignation valid. Where the resignation letter states that it is to take effect on acceptance, or where the articles so require, acceptance is necessary to end the tenure of office of a director. In view of the above legal position, Mr. Raj has ceased to be a director of POL Ltd. with effect from 30 th June, 2004, provided his resignation letter does not state that the resignation is to take effect on acceptance or the articles of POL Ltd. does not so require. Question 7 (a) (i) As per provisions of the Companies Act, 1956, what is the status of XYZ Ltd., a Company incorporated in London, U.K., which has a Share Transfer Office at Mumbai?
FINAL EXAMINATION : NOVEMBER, 2004 78 (ii) ABC Ltd., a foreign company having its Indian principal place of business at Kolkata, West Bengal is required to deliver various documents to Registrar of Companies under the provisions of the Companies Act, 1956. You are required to state, where the said company should deliver such documents.
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