What is Power of Tribunal to assess damages against delinquent directors, etc? What are the Punishment for certain offences? Section 266 and 267 of Indian Companies Act 2013

Power of Tribunal to assess damages against delinquent directors, etc and Punishment for certain offences are defined under Section 266 and 267 of Indian Companies Act 2013. Provisions under these Sections are:

Section 266 of Indian Companies Act 2013 "Power of Tribunal to assess damages against delinquent directors, etc"

(1) If, in the course of the scrutiny or implementation of any scheme or proposal including the draft scheme or proposal, it appears to the Tribunal that any person who has taken part in the promotion, formation or management of the sick company or its undertaking, including any director, manager, officer or employee of the sick company who are or have been in employment of such company, -

 

(a) has misapplied or retained, or become liable or accountable for, any money or property of the sick company; or

(b) has been guilty of any misfeasance, malfeasance, non-feasance or breach of trust in relation to the sick company, it may, by order, direct him to repay or restore the money or property, with or without interest, as it thinks just, or to contribute such sum to the assets of the sick company or the other person, entitled thereto by way of compensation in respect of the misapplication, retainer, misfeasance, malfeasance, non-feasance or breach of trust as the Tribunal thinks just and proper:

Provided that such direction by the Tribunal shall be without prejudice to any other legal action that may be taken against the person including any punishment for fraud in the manner as provided in section 447.

(2) If the Tribunal is satisfied on the basis of the information and evidence in its possession with respect to any person who is or was a director or an officer or other employee of the sick company, that such person by himself or along with others had diverted the funds or other property of such company for any purpose other than the purposes of the company or had managed the affairs of the company in a manner highly detrimental to the interests of the company, the Tribunal shall, by order, direct the public financial institutions, scheduled banks and State level institutions not to provide, for a maximum period of ten years from the date of the order, any financial assistance to such person or any firm of which such person is a partner or any company or other body corporate of which such person is a director, by whatever name called, or to disqualify the said director, promoter, manager from being appointed as a director in any company registered under this Act for a maximum period of six years. (3) No order shall be made by the Tribunal under this section against any person unless such person has been given a reasonable opportunity of being heard.

Section 267 of Indian Companies Act 2013 "Punishment for certain offences"

Whoever violates the provisions of this Chapter or any scheme, or any order, of the Tribunal or the Appellate Tribunal or makes a false statement or gives false evidence before the Tribunal or the Appellate Tribunal or attempts to tamper with the records of reference or appeal filed under this Act, he shall be punishable with imprisonment for a term which may extend to seven years and with fine which may extend to ten lakh rupees.

What is Scheme of revival and rehabilitation? What is sanction of scheme? What is the meaning of scheme to be binding? Section 261, 262 and 263 of Indian Companies Act 2013

What is Implementation of scheme? What is winding up of company on report of company administrator? Section 264 and 265 of Indian Companies Act 2013

What is Power of Tribunal to assess damages against delinquent directors, etc? What are the Punishment for certain offences? Section 266 and 267 of Indian Companies Act 2013

What is Bar of jurisdiction? What is Rehabilitation and Insolvency Fund? What are the Modes of winding up? Section 268, 269 and 270 of Indian Companies Act 2013

What is Circumstances in which company may be wound up by Tribunal? What is petition for winding up? What are the powers of Tribunal? Section 271, 272 and 273 of Indian Companies Act 2013

What is Directions for filing statement of affairs? What is Company Liquidators and their appointments? Section 274 and 275 of Indian Companies Act 2013

What is Removal and replacement of liquidator? What are the rules to give Intimation to Company Liquidator, provisional liquidator and Registrar? Section 276 and 277 of Indian Companies Act 2013

What is Effect of winding up order? What is stay of suits, etc., on winding up order? What is the Jurisdiction of Tribunal? Section 278, 279 and 280 of Indian Companies Act 2013

 

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