Government power to appoint directors to prevent company oppression or mismanagement and to issue binding directions. The Central Government may, on Tribunal satisfaction following a reference or qualifying member application and inquiry, appoint persons as directors to ... Summary
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Government power to appoint directors to prevent company oppression or mismanagement and to issue binding directions.
The Central Government may, on Tribunal satisfaction following a reference or qualifying member application and inquiry, appoint persons as directors to safeguard company, shareholder or public interests where affairs are oppressive or prejudicial; the Tribunal may direct amendment of articles and interim additional directors. Government-appointed directors are exempt from qualification-share and rotation, may be removed by the Government, and are excluded when reckoning board proportions. The Government may issue directions-including altering articles or replacing auditors-and require reports from appointed directors, with such acts treated as effective without further formal compliance.
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