388E. Power of Central Government to remove managerial personnel on the basis of Company Law Board' s decisions.
Notwithstanding any other provision contained in this Act, the 2[ Central Government shall], 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 3[ decision of the 1[ Company Law Board under this Chapter]: Provided that where a firm or a body corporate is concerned in the conduct and management of the affairs of a company as its managing agent orsecretaries and treasurers, and the 4[ decision of the 1[ Company Law Board] is against any partner in such firm, or any director of, or any person holding a general power of attorney from, such body corporate, the Central Government may also remove from the office of managing agent or secretaries and treasurers, such firm or body corporate.
5[ No order removing a firm or body corporate from the office of managing agents or secretaries and treasurers shall be made in pursuance of the proviso to sub- section (1) unless such firm or body corporate has been given a reasonable opportunity of showing cause against the same: Provided that no matter shall be raised by such firm or body cor- porate before the Central Government if such matter has been decided by the 1[ Company Law Board].
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 1[ Company Law Board] permit such person to hold any
such office before the expiry of the said period of five years.
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.
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 provision of this Act. CHAP ARBITRATION, COMPROMISES, ARRANGEMENTS AND RECONSTRUCTIONS CHAPTER V.- ARBITRATION, COMPROMISES, ARRANGEMENTS AND RECONSTRUCTIONS