Director's disqualification

Navin Pandya (Querist) 02 March 2014 This query is : Resolved
Dear Legal Experts

Namaste!

Kindly advise:

Anand Mahindra, CMD, M&M Ltd. guilty of following:

1) He was fined Rs. 50,000 (fifty thousand)by Bombay High Court for importing Yacht without valid import licence.

2) He violated 'Stay' granted by Industrial Court by terminating two officers of the company. M&M Officers Association filed criminal complaint in Labour Court & he was produced in the Court. Subsequently, the matter was settled out-of-court.

In view of the above, is Anand Mahindra disqualified as CMD of the Company?

Best regards,

Navin Pandya

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Guest (Expert) 02 March 2014
No.This is not a disqualification at all to be a chairman.Example Subrata Roy of sahara.If at all you want other Directors and Share holders could do it basing on their voting Rights in next AGM.

Rajendra K Goyal (Expert) 02 March 2014
These can not disqualify till shareholders so wish.

Dr J C Vashista (Expert) 02 March 2014
No, the fine imposed by Bombay High Court and voilating stay order do not disqualify a person to be director.
It depends upon shareholders to retain or disallow.

Biswanath Roy (Expert) 03 March 2014
Disqualification of a Director is to be determined in terms of the MEMORANDUM & ARTICLES OF ASSOCIATION AND NOT OTHERWISE.
The question contained in the query can be dealt with by the BOARD OF DIRECTORS OF THE COMPANY & THE SHARE HOLDERS ONLY.

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