{"id":81174,"date":"2023-11-23T15:42:22","date_gmt":"2023-11-23T10:12:22","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?post_type=act&#038;p=81174"},"modified":"2023-11-23T15:42:25","modified_gmt":"2023-11-23T10:12:25","slug":"section-243","status":"publish","type":"act","link":"https:\/\/enterslice.com\/learning\/act\/companies-act-2013\/section-243\/","title":{"rendered":"Section 243. Consequence Of Termination Or Modification Of Certain Agreements"},"content":{"rendered":"\n<p>(1) Where an order made under section 242 terminates, sets aside or modifies an agreement such as is referred to in subsection&nbsp;<em>(2)<\/em>&nbsp;of that section,&#8211;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>(a) such order shall not give rise to any claims whatever against the company by any person for damages or for compensation for loss of office or in any other respect either in pursuance of the agreement or otherwise;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>(b) no managing director or other director or manager whose agreement is so terminated or set aside shall, for a period of five years from the date of the order terminating or setting aside the agreement, without the leave of the Tribunal, be appointed, or act, as the managing director or other director or manager of the company:<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>Provided that the Tribunal shall not grant leave under this clause unless notice of the intention to apply for leave has been served on the Central Government and that Government has been given a reasonable opportunity of being heard in the matter.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><span id='easy-footnote-1-81174' class='easy-footnote-margin-adjust'><\/span><span class='easy-footnote'><a href='https:\/\/enterslice.com\/learning\/act\/companies-act-2013\/section-243\/#easy-footnote-bottom-1-81174' title='Ins. by Act 22 of 2019, s. 35 (w.e.f. 15-8-2019).'><sup>1<\/sup><\/a><\/span>[(1A) The person who is not a fit and proper person pursuant to sub-section\u00a0<em>(4A)<\/em>\u00a0of section 242 shall not hold the officer of a director or any other officer connected with the conduct and management of the affairs of any other officer connected with the conduct and management of the affairs of any company for a period of five years from the date of the said decision:<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>Provided that the Central Government may, with the leave of the Tribunal, permit such person to hold any such office before the expiry of the said period of five years.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>(1B) Notwithstanding anything contained in any other provisions of this Act, or any other law for the time being in force, or any contract, memorandum or articles, on the removal of a person from the officer of a director or any other officer connected with the conduct and management of the affairs of the company, that person shall not be entitled to, or be paid, any compensation for the loss or termination of officer.]<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>(2) Any person who knowingly acts as a managing director or other director or manager of a company in contravention of clause\u00a0<em>(b)<\/em>\u00a0of sub-section\u00a0<em>(1)<\/em><span id='easy-footnote-2-81174' class='easy-footnote-margin-adjust'><\/span><span class='easy-footnote'><a href='https:\/\/enterslice.com\/learning\/act\/companies-act-2013\/section-243\/#easy-footnote-bottom-2-81174' title=' Ins. by s. 35, ibid. (w.e.f. 15-8-2019).'><sup>2<\/sup><\/a><\/span>[or sub-section (1A)], and every other director of the company who is knowingly a party to such contravention, shall be punishable\u00a0<span id='easy-footnote-3-81174' class='easy-footnote-margin-adjust'><\/span><span class='easy-footnote'><a href='https:\/\/enterslice.com\/learning\/act\/companies-act-2013\/section-243\/#easy-footnote-bottom-3-81174' title='The words &amp;#8220;with imprisonment for a term which may extend to six months or&amp;#8221; s. 44, ibid. (w.e.f. 21-12-2020).'><sup>3<\/sup><\/a><\/span>*** with fine which may extend to\u00a0<span id='easy-footnote-4-81174' class='easy-footnote-margin-adjust'><\/span><span class='easy-footnote'><a href='https:\/\/enterslice.com\/learning\/act\/companies-act-2013\/section-243\/#easy-footnote-bottom-4-81174' title='Subs. by s. 44, ibid., for &amp;#8220;five lakh rupees, or with both&amp;#8221; (w.e.f. 21-12-2020).'><sup>4<\/sup><\/a><\/span>[five lakh rupees].<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(1) Where an order made under section 242 terminates, sets aside or modifies an agreement such as is referred to in subsection&nbsp;(2)&nbsp;of that section,&#8211; (a) such order shall not give rise to any claims whatever against the company by any person for damages or for compensation for loss of office or in any other respect [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":79763,"parent":79755,"menu_order":0,"template":"","format":"standard","meta":[],"categories":[11445],"tags":[1007],"acf":{"service_id":"215"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Section 243. 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