Misfeasance proceedings: tribunal can order restitution and restrict access to finance following diversion or breach by company managers. The Tribunal may order persons involved in the promotion, formation or management of a sick industrial company to repay, restore or contribute money or property, or pay compensation, for misapplication, retention, misfeasance, malfeasance, non-feasance or breach of trust; it may report the matter for further action. If satisfied that a director, officer or employee diverted company funds or managed affairs detrimentally, the Tribunal may direct financial institutions to refuse financial assistance to that person and related entities for a specified period, subject to the person having an opportunity to make submissions, and notwithstanding any criminal liability.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Misfeasance proceedings: tribunal can order restitution and restrict access to finance following diversion or breach by company managers.
The Tribunal may order persons involved in the promotion, formation or management of a sick industrial company to repay, restore or contribute money or property, or pay compensation, for misapplication, retention, misfeasance, malfeasance, non-feasance or breach of trust; it may report the matter for further action. If satisfied that a director, officer or employee diverted company funds or managed affairs detrimentally, the Tribunal may direct financial institutions to refuse financial assistance to that person and related entities for a specified period, subject to the person having an opportunity to make submissions, and notwithstanding any criminal liability.
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