(a) (b) Discuss the grounds under which a chief executive shall ipso facto cease to hold...

 

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(a) (b) Discuss the grounds under which a chief executive shall ipso facto cease to hold office of the chief executive. On 26 October 2022, the board of directors of Axis Cement Limited (ACL) unanimously approved the appointment of Fareed Shah as the chief executive for a period of two years under the terms and conditions specified in the contract. On 9 March 2023, Seema Shah, the spouse of Fareed Shah, got elected on the board of Brut Cement (Pvt) Limited. On 10 March 2023, an urgent meeting of ACL's board was held, in which most of the directors were of the view that Fareed Shah had ipso facto ceased to be the chief executive as a result of aforementioned fact, and demanded the immediate cancellation of his contract. However, the chairman of the board pointed out that the terms and conditions of Fareed Shah's contract specifically prohibit its earlier cancellation. Under the provisions of the Companies Act, 2017, advise ACL's board with regard to the following: (i) The view point expressed by the directors about the cessation of office of chief executive and cancellation of Fareed Shah's contract. How directors' demand may be implemented in the presence of specific provision in the Fareed Shah's contract which prohibits earlier cancellation of the contract? (a) (b) Discuss the grounds under which a chief executive shall ipso facto cease to hold office of the chief executive. On 26 October 2022, the board of directors of Axis Cement Limited (ACL) unanimously approved the appointment of Fareed Shah as the chief executive for a period of two years under the terms and conditions specified in the contract. On 9 March 2023, Seema Shah, the spouse of Fareed Shah, got elected on the board of Brut Cement (Pvt) Limited. On 10 March 2023, an urgent meeting of ACL's board was held, in which most of the directors were of the view that Fareed Shah had ipso facto ceased to be the chief executive as a result of aforementioned fact, and demanded the immediate cancellation of his contract. However, the chairman of the board pointed out that the terms and conditions of Fareed Shah's contract specifically prohibit its earlier cancellation. Under the provisions of the Companies Act, 2017, advise ACL's board with regard to the following: (i) The view point expressed by the directors about the cessation of office of chief executive and cancellation of Fareed Shah's contract. How directors' demand may be implemented in the presence of specific provision in the Fareed Shah's contract which prohibits earlier cancellation of the contract?

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