243 - Consequences of Terminations

Question 1

243(1)(a)

Answer 1

No Compensation on loss of office or any other compensation

Question 2

243(1)(b)

Answer 2

MD/Manager/Director whose agreement was set aside/terminated - disqualified to remain/appointed as MD/Manager/Director of such co for 5 years from date of order

Question 3

Exception to 241(1)(b)

Answer 3

Can be appointed before 5 years subject to prior approval of Tribunal. However, Tribunal shall not grant any approval without prior approval of CG

Question 4

243(2) - Penalty

Answer 4

To every director in default

Fine upto 5 lacs + imprisonment upto 6 months