Section 15(3) in The Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002
(3)Where the management of the business of a borrower, being a company as defined in the Companies Act, 1956 (1 of 1956), is taken over by the secured creditor, then, notwithstanding anything contained in the said Act or in the memorandum or articles of association of such borrower,(a)it shall not be lawful for the shareholders of such company or any other person to nominate or appoint any person to be a director of the company;(b)no resolution passed at any meeting of the shareholders of such company shall be given effect to unless approved by the secured creditor;(c)no proceeding for the winding up of such company or for the appointment of a receiver in respect thereof shall lie in any Court, except with the consent of the secured creditor.
