What is Payment to director for loss of office, etc., in connection with transfer of undertaking, property or shares? Section 191 of Indian Companies Act 2013

Payment to director for loss of office, etc., in connection with transfer of undertaking, property or shares is defined under Section 191 of Indian Companies Act 2013. Provisions under this section is:

Section 191 of Indian Companies Act 2013 "Payment to director for loss of office, etc., in connection with transfer of undertaking, property or shares"

(1) No director of a company shall, in connection with -

(a) the transfer of the whole or any part of any undertaking or property of the company; or

(b) the transfer to any person of all or any of the shares in a company being a transfer resulting from -

(i) an offer made to the general body of shareholders;

 

(ii) an offer made by or on behalf of some other body corporate with a view to a company becoming a subsidiary company of such body corporate or a subsidiary company of its holding company;

(iii) an offer made by or on behalf of an individual with a view to his obtaining the right to exercise, or control the exercise of, not less than one-third of the total voting power at any general meeting of the company; or

(iv) any other offer which is conditional on acceptance to a given extent, receive any payment by way of compensation for loss of office or as consideration

for retirement from office, or in connection with such loss or retirement from such company or from the transferee of such undertaking or property, or from the transferees of shares or from any other person, not being such company, unless particulars as may be prescribed with respect to the payment proposed to be made by such transferee or person, including the amount thereof, have been disclosed to the members of the company and the proposal has been approved by the company in general meeting.


(2) Nothing in sub-section (1) shall affect any payment made by a company to a managing director or whole-time director or manager of the company by way of compensation for loss of office or as consideration for retirement from office or in connection with such loss or retirement subject to limits or priorities, as may be prescribed.

(3) If the payment under sub-section (1) or sub-section (2) is not approved for want of quorum either in a meeting or an adjourned meeting, the proposal shall not be deemed to have been approved.

(4) Where a director of a company receives payment of any amount in contravention of sub-section (1) or the proposed payment is made before it is approved in the meeting, the amount so received by the director shall be deemed to have been received by him in trust for the company.

Punishment for violation of Section 191 of Companies act 2013 regarding payment to director for loss of office in connection with transfer of undertaking property or shares.

(5) 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 twenty-five thousand rupees but which may extend to one lakh rupees.
(6) Nothing in this section shall be taken to prejudice the operation of any law requiring disclosure to be made with respect to any payment received under this section or such other like payments made to a director.

What is the rule for Company to contribute to bona fide and charitable funds, etc? What is Prohibitions and restrictions regarding political contributions? Section 181 and 182 of Indian Companies Act 2013

What is the Power of Board and other persons to make contributions to national defence fund, etc? Section 183 of Indian Companies Act 2013

What is Disclosure of interest by director? What is the law regarding Loan to directors, etc? Section 184 and 185 of Indian Companies Act 2013

Loan and investment by company? What is the meaning of Investments of company to be held in its own name? Section 186 and 187 of Indian Companies Act 2013

What is Related party transactions? What is the Register of contracts or arrangements in which directors are interested? Section 188 and 189 of Indian Companies Act 2013

What is Contract of employment with managing or whole-time directors? Section 190 of Indian Companies Act 2013

What is Payment to director for loss of office, etc., in connection with transfer of undertaking, property or shares? Section 191 of Indian Companies Act 2013

What is Restriction on non-cash transactions involving directors? What is contract by One Person Company? Section 192 and 193 of Indian Companies Act 2013

What is Prohibition on forward dealings in securities of company by director or key managerial personnel? What is Prohibition on insider trading of securities? Section 194 and 195 of Indian Companies Act 2013

What is Appointment of managing director, whole-time director or manager? Section 196 of Indian Companies Act 2013

What is Overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits? Section 197 of Indian Companies Act 2013

What is Calculation of profits? Section 198 of Indian Companies Act 2013

What is Recovery of remuneration in certain cases? What is Central Government or company to fix limit with regard to remuneration? Section 199 and 200 of Indian Companies Act 2013

 

Home     About Us     Privacy Policy     Disclaimer    Contact Us  Sitemap