Power to remove directors: Bank may remove or suspend NBFC directors and appoint administrators to protect depositors and stability. The Bill grants the Bank power to remove directors of NBFCs (excluding Government companies) for public interest, depositor/creditor protection, proper management or financial stability, subject to reasons in writing and an opportunity to represent; the Bank may suspend directors pending representation and bar removed directors from NBFC management for up to five years, appoint replacements who serve at the Bank's pleasure, and deny compensation for loss of office. The Bill likewise authorises the Bank to supersede NBFC boards for similar grounds, appoint an Administrator to exercise board powers, constitute assisting committees, require the Administrator to facilitate reconstitution, and prohibit compensation claims for terminated officeholders.
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.
Power to remove directors: Bank may remove or suspend NBFC directors and appoint administrators to protect depositors and stability.
The Bill grants the Bank power to remove directors of NBFCs (excluding Government companies) for public interest, depositor/creditor protection, proper management or financial stability, subject to reasons in writing and an opportunity to represent; the Bank may suspend directors pending representation and bar removed directors from NBFC management for up to five years, appoint replacements who serve at the Bank's pleasure, and deny compensation for loss of office. The Bill likewise authorises the Bank to supersede NBFC boards for similar grounds, appoint an Administrator to exercise board powers, constitute assisting committees, require the Administrator to facilitate reconstitution, and prohibit compensation claims for terminated officeholders.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
