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CHAPTER XI

APPOINTMENT AND QUALIFICATIONS OF DIRECTORS
 
149. Company to have Board of

(1) Every company shall have a Board of Directors consisting of individuals as
directors and shall have—
(a) a minimum number of three directors in the case of a public company, two
directors in the case of a private company, and one director in the case of a One Person
Company; and1
(b) a maximum of fifteen directors:
Provided that a company may appoint more than fifteen directors after passing a
special resolution:
Provided further that such class or classes of companies as may be prescribed, shall
have at least one woman director.
(2) Every company existing on or before the date of commencement of this Act shall
within one year from such commencement comply with the requirements of the provisions of
sub-section (1).
(3) Every company shall have at least one director who has stayed in India for a total
period of not less than one hundred and eighty-two days in the previous calendar year.
(4) Every listed public company shall have at least one-third of the total number of
directors as independent directors and the Central Government may prescribe the minimum
number of independent directors in case of any class or classes of public companies.
Directors.
Explanation.—For the purposes of this sub-section, any fraction contained in such
one-third number shall be rounded off as one.
(5) Every company existing on or before the date of commencement of this Act shall,
within one year from such commencement or from the date of notification of the rules in
this regard as may be applicable, comply with the requirements of the provisions of
sub-section (4).
(6) An independent director in relation to a company, means a director other than a
managing director or a whole-time director or a nominee director,—
(a) who, in the opinion of the Board, is a person of integrity and possesses
relevant expertise and experience;
(b) (i) who is or was not a promoter of the company or its holding, subsidiary or
associate company;
(ii) who is not related to promoters or directors in the company, its holding,
subsidiary or associate company;
(c) who has or had no pecuniary relationship with the company, its holding,
subsidiary or associate company, or their promoters, or directors, during the two
immediately preceding financial years or during the current financial year;
(d) none of whose relatives has or had pecuniary relationship or transaction
with the company, its holding, subsidiary or associate company, or their promoters, or
directors, amounting to two per cent. or more of its gross turnover or total income or
fifty lakh rupees or such higher amount as may be prescribed, whichever is lower,
during the two immediately preceding financial years or during the current financial
year;
(e) who, neither himself nor any of his relatives—
(i) holds or has held the position of a key managerial personnel or is or
has been employee of the company or its holding, subsidiary or associate
company in any of the three financial years immediately preceding the financial
year in which he is proposed to be appointed;
(ii) is or has been an employee or proprietor or a partner, in any of the
three financial years immediately preceding the financial year in which he is
proposed to be appointed, of—
(A) a firm of auditors or company secretaries in practice or cost auditors
of the company or its holding, subsidiary or associate company; or
(B) any legal or a consulting firm that has or had any transaction
with the company, its holding, subsidiary or associate company amounting
to ten per cent. or more of the gross turnover of such firm;
(iii) holds together with his relatives two per cent. or more of the total
voting power of the company; or
(iv) is a Chief Executive or director, by whatever name called, of any nonprofit
organisation that receives twenty-five per cent. or more of its receipts from
the company, any of its promoters, directors or its holding, subsidiary or associate
company or that holds two per cent. or more of the total voting power of the
company; or
(f) who possesses such other qualifications as may be prescribed.
(7) Every independent director shall at the first meeting of the Board in which he
participates as a director and thereafter at the first meeting of the Board in every financial
year or whenever there is any change in the circumstances which may affect his status as an
independent director, give a declaration that he meets the criteria of independence as provided
in sub-section (6).
Explanation.—For the purposes of this section, “nominee director” means a director
nominated by any financial institution in pursuance of the provisions of any law for the time
being in force, or of any agreement, or appointed by any Government, or any other person to
represent its interests.
(8) The company and independent directors shall abide by the provisions specified in
Schedule IV.
(9) Notwithstanding anything contained in any other provision of this Act, but subject
to the provisions of sections 197 and 198, an independent director shall not be entitled to any
stock option and may receive remuneration by way of fee provided under sub-section (5) of
section 197, reimbursement of expenses for participation in the Board and other meetings
and profit related commission as may be approved by the members.
(10) Subject to the provisions of section 152, an independent director shall hold office
for a term up to five consecutive years on the Board of a company, but shall be eligible for reappointment
on passing of a special resolution by the company and disclosure of such
appointment in the Board's report.
(11) Notwithstanding anything contained in sub-section (10), no independent director
shall hold office for more than two consecutive terms, but such independent director shall be
eligible for appointment after the expiration of three years of ceasing to become an independent
director:
Provided that an independent director shall not, during the said period of three years, be
appointed in or be associated with the company in any other capacity, either directly or indirectly.
Explanation.—For the purposes of sub-sections (10) and (11), any tenure of an
independent director on the date of commencement of this Act shall not be counted as a term
under those sub-sections.
(12) Notwithstanding anything contained in this Act,—
(i) an independent director;
(ii) a non-executive director not being promoter or key managerial personnel,
shall be held liable, only in respect of such acts of omission or commission by a company
which had occurred with his knowledge, attributable through Board processes, and with his
consent or connivance or where he had not acted diligently.
(13) The provisions of sub-sections (6) and (7) of section 152 in respect of retirement
of directors by rotation shall not be applicable to appointment of independent directors.
 
 
150.Manner of selection of independent directors and maintenance of databank of independent directors.

(1) Subject to the provisions contained in sub-section (5) of section 149, an
independent director may be selected from a data bank containing names, addresses and
qualifications of persons who are eligible and willing to act as independent directors,
maintained by any body, institute or association, as may by notified by the Central
Government, having expertise in creation and maintenance of such data bank and put on
their website for the use by the company making the appointment of such directors:
Provided that responsibility of exercising due diligence before selecting a person from
the data bank referred to above, as an independent director shall lie with the company
making such appointment.
(2) The appointment of independent director shall be approved by the company in
general meeting as provided in sub-section (2) of section 152 and the explanatory statement
annexed to the notice of the general meeting called to consider the said appointment shall
indicate the justification for choosing the appointee for appointment as independent director.
(3) The data bank referred to in sub-section (1), shall create and maintain data of
persons willing to act as independent director in accordance with such rules as may be
prescribed.
(4) The Central Government may prescribe the manner and procedure of selection
of independent directors who fulfil the qualifications and requirements specified under
section 149.


151.Appointment of director elected by small shareholders. 

 A listed company may have one director elected by such small shareholders in
such manner and with such terms and conditions as may be prescribed.
Explanation.—For the purposes of this section “small shareholders” means a
shareholder holding shares of nominal value of not more than twenty thousand rupees or
such other sum as may be prescribed.
 
 
 
152. Appointment of directors.

(1) Where no provision is made in the articles of a company for the appointment
of the first director, the subscribers to the memorandum who are individuals shall be deemed
to be the first directors of the company until the directors are duly appointed and in case of
a One Person Company an individual being member shall be deemed to be its first director
until the director or directors are duly appointed by the member in accordance with the
provisions of this section.
(2) Save as otherwise expressly provided in this Act, every director shall be appointed
by the company in general meeting.
(3) No person shall be appointed as a director of a company unless he has been
allotted the Director Identification Number under section 154.
(4) Every person proposed to be appointed as a director by the company in general
meeting or otherwise, shall furnish his Director Identification Number and a declaration that
he is not disqualified to become a director under this Act.
(5) A person appointed as a director shall not act as a director unless he gives his
consent to hold the office as director and such consent has been filed with the Registrar
within thirty days of his appointment in such manner as may be prescribed:
Provided that in the case of appointment of an independent director in the general
meeting, an explanatory statement for such appointment, annexed to the notice for the
general meeting, shall include a statement that in the opinion of the Board, he fulfils the
conditions specified in this Act for such an appointment.
(6) (a) Unless the articles provide for the retirement of all directors at every annual
general meeting, not less than two-thirds of the total number of directors of a public company
shall—
(i) be persons whose period of office is liable to determination by retirement of
directors by rotation; and
(ii) save as otherwise expressly provided in this Act, be appointed by the
company in general meeting.
(b) The remaining directors in the case of any such company shall, in default of, and
subject to any regulations in the articles of the company, also be appointed by the company
in general meeting.
(c) At the first annual general meeting of a public company held next after the date of
the general meeting at which the first directors are appointed in accordance with clauses (a)
and (b) and at every subsequent annual general meeting, one-third of such of the directors
for the time being as are liable to retire by rotation, or if their number is neither three nor a
multiple of three, then, the number nearest to one-third, shall retire from office.
(d) The directors to retire by rotation at every annual general meeting shall be those
who have been longest in office since their last appointment, but as between persons who
became directors on the same day, those who are to retire shall, in default of and subject to
any agreement among themselves, be determined by lot.
(e) At the annual general meeting at which a director retires as aforesaid, the company
may fill up the vacancy by appointing the retiring director or some other person thereto.
Explanation.—For the purposes of this sub-section, “total number of directors” shall
not include independent directors, whether appointed under this Act or any other law for the
time being in force, on the Board of a company.
(7) (a) If the vacancy of the retiring director is not so filled-up and the meeting has not
expressly resolved not to fill the vacancy, the meeting shall stand adjourned till the same day
in the next week, at the same time and place, or if that day is a national holiday, till the next
succeeding day which is not a holiday, at the same time and place.
(b) If at the adjourned meeting also, the vacancy of the retiring director is not filled up
and that meeting also has not expressly resolved not to fill the vacancy, the retiring director
shall be deemed to have been re-appointed at the adjourned meeting, unless—
(i) at that meeting or at the previous meeting a resolution for the re-appointment
of such director has been put to the meeting and lost;
(ii) the retiring director has, by a notice in writing addressed to the company or
its Board of directors, expressed his unwillingness to be so re-appointed;
(iii) he is not qualified or is disqualified for appointment;
(iv) a resolution, whether special or ordinary, is required for his appointment or
re-appointment by virtue of any provisions of this Act; or
(v) section 162 is applicable to the case.
Explanation.—For the purposes of this section and section 160, the expression “retiring
director” means a director retiring by rotation.
 
153.Application for allotment of Director Identification Number.

Every individual intending to be appointed as director of a company shall make
an application for allotment of Director Identification Number to the Central Government in
such form and manner and along with such fees as may be prescribed.
 
 
154. Allotment of Director Identification Number.

The Central Government shall, within one month from the receipt of the application
under section 153, allot a Director Identification Number to an applicant in such manner as
may be prescribed.
 
 
 
155.Prohibition to obtain more than one Director Identification Number.

No individual, who has already been allotted a Director Identification Number
under section 154, shall apply for, obtain or possess another Director Identification Number.
 
 
 
156.Director to intimate Director Identification Number.

Every existing director shall, within one month of the receipt of Director
Identification Number from the Central Government, intimate his Director Identification Number
to the company or all companies wherein he is a director.
 
 
 
157.Company to inform Director Identification Number to Registrar.

(1) Every company shall, within fifteen days of the receipt of intimation under
section 156, furnish the Director Identification Number of all its directors to the Registrar or
any other officer or authority as may be specified by the Central Government with such fees
as may be prescribed or with such additional fees as may be prescribed within the time
specified under section 403 and every such intimation shall be furnished in such form and
manner as may be prescribed.
(2) If a company fails to furnish Director Identification Number under sub-section (1),
before the expiry of the period specified under section 403 with additional fee, the company
shall be punishable with fine which shall not be less than twenty-five thousand rupees but
which may extend to one lakh rupees and every officer of the company who is in default shall
be punishable with fine which shall not be less than twenty-five thousand rupees but which
may extend to one lakh rupees.
 
 
 
158.Option to adopt principle of proportional representation for appointment of directors.

Every person or company, while furnishing any return, information or particulars
as are required to be furnished under this Act, shall mention the Director Identification
Number in such return, information or particulars in case such return, information or particulars
relate to the director or contain any reference of any director.
 
 
159.Disqualifications for appointment of director.

If any individual or director of a company, contravenes any of the provisions of
section 152, section 155 and section 156, such individual or director of the company shall be
punishable with imprisonment for a term which may extend to six months or with fine which
may extend to fifty thousand rupees and where the contravention is a continuing one, with
a further fine which may extend to five hundred rupees for every day after the first during
which the contravention continues.
 
 
 
160. Right of persons other than retiring directors to stand for directorship.

(1) A person who is not a retiring director in terms of section 152 shall, subject to
the provisions of this Act, be eligible for appointment to the office of a director at any general
meeting, if he, or some member intending to propose him as a director, has, not less than
fourteen days before the meeting, left at the registered office of the company, a notice in
writing under his hand signifying his candidature as a director or, as the case may be, the
intention of such member to propose him as a candidate for that office, along with the
deposit of one lakh rupees or such higher amount as may be prescribed which shall be
refunded to such person or, as the case may be, to the member, if the person proposed gets
elected as a director or gets more than twenty-five per cent. of total valid votes cast either on
show of hands or on poll on such resolution.
(2) The company shall inform its members of the candidature of a person for the office
of director under sub-section (1) in such manner as may be prescribed.
 
 
 
161.Appointment of additional director, alternate director and nominee director.

(1) The articles of a company may confer on its Board of Directors the power to
appoint any person, other than a person who fails to get appointed as a director in a general
meeting, as an additional director at any time who shall hold office up to the date of the next
annual general meeting or the last date on which the annual general meeting should have
been held, whichever is earlier.
(2) The Board of Directors of a company may, if so authorised by its articles or by a
resolution passed by the company in general meeting, appoint a person, not being a person
holding any alternate directorship for any other director in the company, to act as an alternate
director for a director during his absence for a period of not less than three months from
India:
Provided that no person shall be appointed as an alternate director for an independent
director unless he is qualified to be appointed as an independent director under the provisions
of this Act:
Provided further that an alternate director shall not hold office for a period longer than
that permissible to the director in whose place he has been appointed and shall vacate the
office if and when the director in whose place he has been appointed returns to India:
Provided also that if the term of office of the original director is determined before he so
returns to India, any provision for the automatic re-appointment of retiring directors in
default of another appointment shall apply to the original, and not to the alternate director.
(3) Subject to the articles of a company, the Board may appoint any person as a
director nominated by any institution in pursuance of the provisions of any law for the time
being in force or of any agreement or by the Central Government or the State Government by
virtue of its shareholding in a Government company.
(4) In the case of a public company, if the office of any director appointed by the
company in general meeting is vacated before his term of office expires in the normal course,
the resulting casual vacancy may, in default of and subject to any regulations in the articles
of the company, be filled by the Board of Directors at a meeting of the Board:
Provided that any person so appointed shall hold office only up to the date up to
which the director in whose place he is appointed would have held office if it had not been
vacated.
 
 
 
162.Appointment of directors to be voted individually.

(1) At a general meeting of a company, a motion for the appointment of two or
more persons as directors of the company by a single resolution shall not be moved unless
a proposal to move such a motion has first been agreed to at the meeting without any vote
being cast against it.
(2) A resolution moved in contravention of sub-section (1) shall be void, whether or
not any objection was taken when it was moved.
(3) A motion for approving a person for appointment, or for nominating a person for
appointment as a director, shall be treated as a motion for his appointment.
 
 
 
163.Number of directorships.

Notwithstanding anything contained in this Act, the articles of a company may
provide for the appointment of not less than two-thirds of the total number of the directors
of a company in accordance with the principle of proportional representation, whether by the
single transferable vote or by a system of cumulative voting or otherwise and such
appointments may be made once in every three years and casual vacancies of such directors
shall be filled as provided in sub-section (4) of section 161.
 
 
 
164.Disqualifications for appointment of director.

(1) A person shall not be eligible for appointment as a director of a company, if —
(a) he is of unsound mind and stands so declared by a competent court;
(b) he is an undischarged insolvent;
(c) he has applied to be adjudicated as an insolvent and his application is pending;
(d) he has been convicted by a court of any offence, whether involving moral
turpitude or otherwise, and sentenced in respect thereof to imprisonment for not less
than six months and a period of five years has not elapsed from the date of expiry of the
sentence:
Provided that if a person has been convicted of any offence and sentenced in
respect thereof to imprisonment for a period of seven years or more, he shall not be
eligible to be appointed as a director in any company;
(e) an order disqualifying him for appointment as a director has been passed by
a court or Tribunal and the order is in force;
(f) he has not paid any calls in respect of any shares of the company held by him,
whether alone or jointly with others, and six months have elapsed from the last day
fixed for the payment of the call;
(g) he has been convicted of the offence dealing with related party transactions
under section 188 at any time during the last preceding five years; or
(h) he has not complied with sub-section (3) of section 152.
(2) No person who is or has been a director of a company which—
(a) has not filed financial statements or annual returns for any continuous period
of three financial years; or
(b) has failed to repay the deposits accepted by it or pay interest thereon or to
redeem any debentures on the due date or pay interest due thereon or pay any dividend
declared and such failure to pay or redeem continues for one year or more,
shall be eligible to be re-appointed as a director of that company or appointed in other
company for a period of five years from the date on which the said company fails to do so.
(3) A private company may by its articles provide for any disqualifications for
appointment as a director in addition to those specified in sub-sections (1) and (2):
Provided that the disqualifications referred to in clauses (d), (e) and (g) of sub-section
(1) shall not take effect—
(i) for thirty days from the date of conviction or order of disqualification;
(ii) where an appeal or petition is preferred within thirty days as aforesaid against
the conviction resulting in sentence or order, until expiry of seven days from the date
on which such appeal or petition is disposed off; or
(iii) where any further appeal or petition is preferred against order or sentence
within seven days, until such further appeal or petition is disposed off.
 
 
 
165. Number of directorships.

(1) No person, after the commencement of this Act, shall hold office as a director,
including any alternate directorship, in more than twenty companies at the same time:
Provided that the maximum number of public companies in which a person can be
appointed as a director shall not exceed ten.
Explanation.— For reckoning the limit of public companies in which a person can be
appointed as director, directorship in private companies that are either holding or subsidiary
company of a public company shall be included.
(2) Subject to the provisions of sub-section (1), the members of a company may, by
special resolution, specify any lesser number of companies in which a director of the
company may act as directors.
(3) Any person holding office as director in companies more than the limits as specified
in sub-section (1), immediately before the commencement of this Act shall, within a period of
one year from such commencement,—
(a) choose not more than the specified limit of those companies, as companies in
which he wishes to continue to hold the office of director;
(b) resign his office as director in the other remaining companies; and
(c) intimate the choice made by him under clause (a), to each of the companies in
which he was holding the office of director before such commencement and to the
Registrar having jurisdiction in respect of each such company.
(4) Any resignation made in pursuance of clause (b) of sub-section (3) shall become
effective immediately on the despatch thereof to the company concerned.
(5) No such person shall act as director in more than the specified number of
companies,—
(a) after despatching the resignation of his office as director or non-executive
director thereof, in pursuance of clause (b) of sub-section (3); or
(b) after the expiry of one year from the commencement of this Act,
whichever is earlier.
(6) If a person accepts an appointment as a director in contravention of
sub-section (1), he shall be punishable with fine which shall not be less than five thousand
rupees but which may extend to twenty-five thousand rupees for every day after the first
during which the contravention continues.
 
 
 
166. Duties of directors.

(1) Subject to the provisions of this Act, a director of a company shall act in
accordance with the articles of the company.
(2) A director of a company shall act in good faith in order to promote the objects of the
company for the benefit of its members as a whole, and in the best interests of the company,
its employees, the shareholders, the community and for the protection of environment.
(3) A director of a company shall exercise his duties with due and reasonable care, skill
and diligence and shall exercise independent judgment.
(4) A director of a company shall not involve in a situation in which he may have a
direct or indirect interest that conflicts, or possibly may conflict, with the interest of the
company.
(5) A director of a company shall not achieve or attempt to achieve any undue gain or
advantage either to himself or to his relatives, partners, or associates and if such director is
found guilty of making any undue gain, he shall be liable to pay an amount equal to that gain
to the company.
(6) A director of a company shall not assign his office and any assignment so made
shall be void.
(7) If a director of the company contravenes the provisions of this section such
director shall be punishable with fine which shall not be less than one lakh rupees but which
may extend to five lakh rupees.


167.Vacation of office of director.

(1) The office of a director shall become vacant in case—
(a) he incurs any of the disqualifications specified in section 164;
(b) he absents himself from all the meetings of the Board of Directors held
during a period of twelve months with or without seeking leave of absence of the
Board;
(c) he acts in contravention of the provisions of section 184 relating to entering
into contracts or arrangements in which he is directly or indirectly interested;
(d) he fails to disclose his interest in any contract or arrangement in which he is
directly or indirectly interested, in contravention of the provisions of section 184;
(e) he becomes disqualified by an order of a court or the Tribunal;
(f) he is convicted by a court of any offence, whether involving moral turpitude
or otherwise and sentenced in respect thereof to imprisonment for not less than six
months:
Provided that the office shall be vacated by the director even if he has filed an
appeal against the order of such court;
(g) he is removed in pursuance of the provisions of this Act;
(h) he, having been appointed a director by virtue of his holding any office or
other employment in the holding, subsidiary or associate company, ceases to hold
such office or other employment in that company.
(2) If a person, functions as a director even when he knows that the office of director
held by him has become vacant on account of any of the disqualifications specified in subsection
(1), he shall be punishable with imprisonment for a term which may extend to one
year or with fine which shall not be less than one lakh rupees but which may extend to five
lakh rupees, or with both.
(3) Where all the directors of a company vacate their offices under any of the
disqualifications specified in sub-section (1), the promoter or, in his absence, the Central
Government shall appoint the required number of directors who shall hold office till the
directors are appointed by the company in the general meeting.
(4) A private company may, by its articles, provide any other ground for the vacation
of the office of a director in addition to those specified in sub-section (1).
 
 
 
168.Resignation of director

(1) A director may resign from his office by giving a notice in writing to the
company and the Board shall on receipt of such notice take note of the same and the
company shall intimate the Registrar in such manner, within such time and in such form as
may be prescribed and shall also place the fact of such resignation in the report of directors
laid in the immediately following general meeting by the company:
Provided that a director shall also forward a copy of his resignation along with
detailed reasons for the resignation to the Registrar within thirty days of resignation in such
manner as may be prescribed.
(2) The resignation of a director shall take effect from the date on which the notice is
received by the company or the date, if any, specified by the director in the notice, whichever
is later:
Provided that the director who has resigned shall be liable even after his resignation
for the offences which occurred during his tenure.
(3) Where all the directors of a company resign from their offices, or vacate their
offices under section 167, the promoter or, in his absence, the Central Government shall
appoint the required number of directors who shall hold office till the directors are appointed
by the company in general meeting.
 
 
 
169. Removal of directors.

(1) A company may, by ordinary resolution, remove a director, not being a director
appointed by the Tribunal under section 242, before the expiry of the period of his office after
giving him a reasonable opportunity of being heard:
Provided that nothing contained in this sub-section shall apply where the company
has availed itself of the option given to it under section 163 to appoint not less than twothirds
of the total number of directors according to the principle of proportional
representation.
(2) A special notice shall be required of any resolution, to remove a director under this
section, or to appoint somebody in place of a director so removed, at the meeting at which he
is removed.
(3) On receipt of notice of a resolution to remove a director under this section, the
company shall forthwith send a copy thereof to the director concerned, and the director,
whether or not he is a member of the company, shall be entitled to be heard on the resolution
at the meeting.
(4) Where notice has been given of a resolution to remove a director under this section
and the director concerned makes with respect thereto representation in writing to the
company and requests its notification to members of the company, the company shall, if the
time permits it to do so,—
(a) in any notice of the resolution given to members of the company, state the
fact of the representation having been made; and
(b) send a copy of the representation to every member of the company to whom
notice of the meeting is sent (whether before or after receipt of the representation by
the company),
and if a copy of the representation is not sent as aforesaid due to insufficient time or for the
company’s default, the director may without prejudice to his right to be heard orally require
that the representation shall be read out at the meeting:
Provided that copy of the representation need not be sent out and the representation
need not be read out at the meeting if, on the application either of the company or of any
other person who claims to be aggrieved, the Tribunal is satisfied that the rights conferred
by this sub-section are being abused to secure needless publicity for defamatory matter; and
the Tribunal may order the company’s costs on the application to be paid in whole or in part
by the director notwithstanding that he is not a party to it.
(5) A vacancy created by the removal of a director under this section may, if he had
been appointed by the company in general meeting or by the Board, be filled by the
appointment of another director in his place at the meeting at which he is removed, provided
special notice of the intended appointment has been given under sub-section (2).
(6) A director so appointed shall hold office till the date up to which his predecessor
would have held office if he had not been removed.
(7) If the vacancy is not filled under sub-section (5), it may be filled as a casual
vacancy in accordance with the provisions of this Act:
Provided that the director who was removed from office shall not be re-appointed as a
director by the Board of Directors.
(8) Nothing in this section shall be taken—
(a) as depriving a person removed under this section of any compensation or
damages payable to him in respect of the termination of his appointment as director as
per the terms of contract or terms of his appointment as director, or of any other
appointment terminating with that as director; or
(b) as derogating from any power to remove a director under other provisions of
this Act.
 
 
 
 
170. Register of directors and key managerial personnel and their shareholding.

(1) Every company shall keep at its registered office a register containing such
particulars of its directors and key managerial personnel as may be prescribed, which shall
include the details of securities held by each of them in the company or its holding, subsidiary,
subsidiary of company’s holding company or associate companies.
(2) A return containing such particulars and documents as may be prescribed, of the
directors and the key managerial personnel shall be filed with the Registrar within thirty days
from the appointment of every director and key managerial personnel, as the case may be,
and within thirty days of any change taking place.
 
 
 
 
171.Members’ right to inspect.

(1) The register kept under sub-section (1) of section 170,—
(a) shall be open for inspection during business hours and the members shall
have a right to take extracts therefrom and copies thereof, on a request by the members,
be provided to them free of cost within thirty days; and
(b) shall also be kept open for inspection at every annual general meeting of the
company and shall be made accessible to any person attending the meeting.
(2) If any inspection as provided in clause (a) of sub-section (1) is refused, or if any
copy required under that clause is not sent within thirty days from the date of receipt of such
request, the Registrar shall on an application made to him order immediate inspection and
supply of copies required thereunder.
 
 
 
172. Punishment.

If a company contravenes any of the provisions of this Chapter and for which no
specific punishment is provided therein, the company and every officer of the company who
is in default shall be punishable with fine which shall not be less than fifty thousand rupees
but which may extend to five lakh rupees.
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