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Companies Act-Provisions.
Companies Act-Provisions.
of Companies Requirement
Act, 1956
(1) A person shall not be capable of being appointed director of a
company, if-
(A) has not filed the annual accounts and annual returns for any
continuous three financial years commencing on and after the first date
of April, 1999; or
(B) has failed to repay its deposit or interest thereon on due date or
redeem its debentures on done date or pay dividend and such failure
continues for one year or more
Section 203 (1) (1) Where-
Power to restrain (a) a person is convicted of any offence in connection with the
fraudulent persons promotion, formation or management of a company; or
from managing
companies
(b) in the course of winding-up a company it appears that a person-
(i) has been guilty of any offence for which he is punishable (whether he
has been convicted or not) under section 542; or
(ii) has otherwise been guilty, while an officer of the company, of any
fraud or misfeasance in relation to the company or of any breach of his
duty to the company;
the Court or the Tribunal, as the case may be, may make an order that
that person shall not, without the leave of the Court or the Tribunal, as
the case may be, be a director of, or in any way, whether directly or
indirectly, be concerned or take part in the promotion, formation or
management of a company, for such period not exceeding five years as
may be specified in the order.
Central Government may remove from office any director, or any other
person concerned in the conduct and management of the affairs, of a
Section 388E
Power of Central
company against whom there is a decision of the Tribunal.
Government to
remove managerial The person against whom an order of removal from office is made shall
personnel on the basis not hold the office of a director of any company during a period of five
of Tribunal decision years from the date of the order of removal.