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of <h1>Company's Expulsion Clause in Articles Invalidated by Central Government; Violates Companies Act and Natural Justice Principles.</h1> A public limited company amended its articles of association to allow its board to expel members if their conduct is deemed detrimental to the company. The Central Government reviewed this amendment and determined it was invalid, as it contravenes fundamental company law principles and the Companies Act. The amendment undermines members' rights and the powers of the Central Government and courts. It is also contrary to natural justice and public policy under the Indian Contract Act. The Supreme Court's decision in Bajaj Auto Ltd. v. N.K. Firodia supports this view, making such expulsion provisions illegal and ultra vires.
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