Regulatory power to remove directors enables removal and board supersession with appointment of administrators and bars compensation claims. The amendment empowers the Bank to remove directors of non banking financial companies and to supersede their boards where necessary to protect depositors, creditors or financial stability; it requires reasons in writing, affords an opportunity to make representations but permits interim suspension, authorises appointment of replacement directors or an Administrator (with committee support and Bank directions), and denies entitlement to compensation for removal or termination.
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.
Regulatory power to remove directors enables removal and board supersession with appointment of administrators and bars compensation claims.
The amendment empowers the Bank to remove directors of non banking financial companies and to supersede their boards where necessary to protect depositors, creditors or financial stability; it requires reasons in writing, affords an opportunity to make representations but permits interim suspension, authorises appointment of replacement directors or an Administrator (with committee support and Bank directions), and denies entitlement to compensation for removal or termination.
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