https://www.taxtmi.com/caselaws?id=390556 The court upheld the validity of the proviso to Section 167(1)(a) of the Companies Act, inserted by the Companies (Amendment) Act 2017, dismissing the writ petition. The proviso was found to be constitutionally valid, not violating Article 14 of the Constitution of India. It aims to ensure transparency, probity, and accountability in corporate governance by requiring Directors of defaulting companies to vacate their posts in other companies. This decision aligns with the legislative intent to prevent mismanagement, protect investors, and promote good corporate governance. en-us Mon, 02 Dec 2019 00:00:00 +0530 Sat, 30 Jan 2021 17:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=390556 The court upheld the validity of the proviso to Section 167(1)(a) of the Companies Act, inserted by the Companies (Amendment) Act 2017, dismissing the writ petition. The proviso was found to be constitutionally valid, not violating Article 14 of the Constitution of India. It aims to ensure transparency, probity, and accountability in corporate governance by requiring Directors of defaulting companies to vacate their posts in other companies. This decision aligns with the legislative intent to prevent mismanagement, protect investors, and promote good corporate governance. Case-Laws Companies Law Mon, 02 Dec 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=390556