Companies (Appointment of Small Shareholders' Director) Rules, 2001
6. Vacation of office
A person appointed as small shareholders' director shall have to vacate the office if -
( i ) such person so elected, as director of small shareholders ceases to be a small shareholders' director on and from such date on which he ceased to be a small shareholder;
(ii) he has been rendered disqualified by virtue of sub-rule (1) of rule (5).
(iii) he fails to pay any call in respect of shares of the company held by him, whether alone or jointly with others, within six months from the last date fixed for the payment of the call;
(iv) he absents himself from three consecutive meetings of the Board of directors, or from all meetings of the Board for a continuous period of three months, whichever is longer, without obtaining leave of absence from the Board:
(v) he is partner of any private company of which he is a director, accepts a loan, or any guarantee or security for a loan, from the company in contravention of section 295;
(vi) he acts in contravention of section 299;
(vii) he becomes disqualified by an order of Court under section 203;
(viii) he is removed in pursuance of section 284.