407. Consequences of termination or modification of certain agreements .-
(1)Where an order [* * *] made under section 397 or 398 terminates, sets aside, or modifies an agreement such as is referred to in clause (d) or (e) of section 402,-(a)the 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;(b)no managing or other Director, [* * *] [ The words " managing agent, secretaries and treasurers" omitted by Act 53 of 2000, Section 182 (w.e.f. 13.12.2000).] or manager whose agreement is so terminated or set aside [* * *] [ The words " managing agent or secretaries and treasurers" omitted by Act 53 of 2000, Section 182 (w.e.f. 13.12.2000).] shall, for a period of five years from the date of [the order terminating or setting aside the agreement] [ Substituted by Act 65 of 1960, Section 154, for " the order terminating the agreement" (w.e.f. 28.12.1960).], without the leave of the [Tribunal] [ Substituted by Act 11 of 2003, Section 44, for " Company Law Board" .], be appointed, or act, as the managing or other Director [* * *] [ The words " managing agent or secretaries and treasurers" omitted by Act 53 of 2000, Section 182 (w.e.f. 13.12.2000).] or manager of the company.(2)(a)Any person who knowingly acts as a managing or other Director, [* * *] [ The words " managing agent or secretaries and treasurers" omitted by Act 53 of 2000, Section 182 (w.e.f. 13.12.2000).] or manager of a company in contravention of clause (b) of sub-section (1);[* * *] [ Clause (b) omitted by Act 53 of 2000, Section 182 (w.e.f. 13.12.2000).](c)every other Director or every Director, as the case may be, of the company, who is knowingly a party to such contravention, shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to [fifty thousand rupees] [ Substituted by Act 53 of 2000, Section 182, for " five thousand rupees" (w.e.f. 13.12.2000).], or with both.(3)[No leave shall be granted] [ Substituted by Act 31 of 1988, Section 67, for " No Court shall grant leave" (w.e.f. 31.5.1991).] under clause (b) of sub-section (1) unless notice of the intention to apply for leave has been served on the Central Government and that Government has been given an opportunity of being heard in the matter.B. Powers of Central Government
