Director misconduct sanctions restrict future directorships and credit access following misapplication of company assets. The Tribunal may order repayment or restoration of misapplied or retained money or property of a sick company, impose contributions to the company's assets or award compensation for misfeasance, malfeasance, non-feasance or breach of trust; such directions are without prejudice to other legal action, including criminal punishment for fraud. If satisfied that a director, officer or employee diverted company assets or managed the company detrimentally, the Tribunal may direct financial institutions to withhold financial assistance to that person or associated firms and may disqualify the person from directorship, provided the person is given a reasonable opportunity to be heard.
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.
Director misconduct sanctions restrict future directorships and credit access following misapplication of company assets.
The Tribunal may order repayment or restoration of misapplied or retained money or property of a sick company, impose contributions to the company's assets or award compensation for misfeasance, malfeasance, non-feasance or breach of trust; such directions are without prejudice to other legal action, including criminal punishment for fraud. If satisfied that a director, officer or employee diverted company assets or managed the company detrimentally, the Tribunal may direct financial institutions to withhold financial assistance to that person or associated firms and may disqualify the person from directorship, provided the person is given a reasonable opportunity to be heard.
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