Section 243 of CA 2013 : Section 243: Consequence Of Termination Or Modification Of Certain Agreements

Explanation using Example

Imagine a company where the managing director has been involved in practices that go against the best interests of the company and its shareholders. After a thorough investigation, the Tribunal makes an order under Section 242 of the Companies Act, 2013, to remove the managing director from their position.

Following this order, Section 243 comes into play:

• The removed managing director cannot claim any compensation from the company for loss of office or any other damages, as per subsection (1)(a).
• Furthermore, the man...

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