388E. Power of Central Government to remove managerial personnel on the basis of [Tribunal] decision
(1)Notwithstanding any other provision contained in this Act, the [Central Government shall] [ Substituted by Act 17 of 1967, Section 4 and Schedule, for " Central Government may" (w.e.f. 1.7.1967).] by order, remove from office any Director, or any other person concerned in the conduct and management of the affairs, of a company, against whom there is a [decision of the [Tribunal] [Substituted by Act 17 of 1967, Section 4 and Schedule, for " finding of the Tribunal under this Chapter or a decision of a High Court thereon" (w.e.f. 1.7.1967). ] [under this Chapter] [Substituted by Act 17 of 1967, Section 4 and Schedule, for " finding of the Tribunal under this Chapter or a decision of a High Court thereon" (w.e.f. 1.7.1967). ].[* * *] [ Proviso omitted by Act 53 of 2000, Section 173 (w.e.f. 13.12.2000).][* * *] [ Sub-Section (2) omitted by Act 53 of 2000, Section 173 (w.e.f. 13.12.2000).](3)The person against whom an order of removal from office is made under this section shall not hold the office of a Director or any other office connected with the conduct and management of the affairs of any company during a period of five years from the date of the order of removal:Provided that the Central Government may, with the previous concurrence of the [Tribunal] [ Substituted by Act 11 of 2003, Section 38, for " Company Law Board" .], permit such person to hold any such office before the expiry of the said period of five years.(4)Notwithstanding anything contained in any other provision of this Act, or any other law or any contract, memorandum or articles, on the removal of a person from the office of a Director or, as the case may be, any other office 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 office.(5)On the removal of a person from the office of a Director or, as the case may be, any other office connected with the conduct and management of the affairs of the company, the company may, with the previous approval of the Central Government, appoint another person to that office in accordance with the provisions of this Act.
