(1)Where in the opinion of the Central Government there are circumstances suggesting-(a)that any person concerned in the conduct and management of the affairs of a company is or has been in connection therewith guilty of fraud, misfeasance, persistent negligence or default in carrying out his obligations and functions under the law, or breach of trust; or(b)that the business of a company is not or has not been conducted and managed by such person in accordance with sound business principles or prudent commercial practices; or(c)that a company is or has been conducted and managed by such person in a manner which is likely to cause, or has caused, serious injury or damage to the interest of the trade, industry or business to which such company pertains; or(d)that the business of a company is or has been conducted and managed by such person with intent to defraud its creditors, members or any other persons or otherwise for a fraudulent or unlawful purpose or in a manner prejudicial to public interest, the Central Government may state a case against the person aforesaid and refer the same to the [Tribunal] [Substituted by Act 11 of 2003, Section 38, for " Company Law Board" . ] with a request that the [Tribunal] [Substituted by Act 11 of 2003, Section 38, for " Company Law Board" . ] may inquire into the case and [record a decision] [ Substituted by Act 17 of 1967, Section 4 and Schedule, for " record a finding" (w.e.f. 1.7.1967).] as to whether or not such person is a fit and proper person to hold the office of Director or any other office connected with the conduct and management of any company.
