Section 174 — Prohibition on assignment of office by directors

(1) A director
of any company shall not assign his office to any other person and any such
appointment shall be void ab-initio.

(2) Notwithstanding anything contained in sub -section (1), the
appointment b y a director, with the approval of the board, of an alternate or
substitute director to act for him during his absence from Pakistan of not less than
ninety days, shall not be deemed to be an assignment of office.

(3) The alternate director appointed und er sub -section (2) shall ipso
facto vacate office if and when the director appointing him returns to Pakistan.