Section 388 of the Companies Act, 2013
Section 388 of the Companies Act, 2013 has been omitted.
🗂️ Historical Context:
Originally, Section 388 was inserted by the Companies (Amendment) Act, 2020, but it has since been omitted by the Companies (Amendment) Act, 2021, with effect from 11 February 2021.
📌 What was Section 388 earlier?
Prior to its omission, Section 388 dealt with:
“Provisions relating to disqualification of directors by Tribunal.”
It empowered the Tribunal (NCLT) to remove a director if the director was found guilty of fraud, misfeasance, or persistent negligence, upon an application made by the Central Government.
🔍 Current Status:
Section 388 does not exist in the Companies Act, 2013 as of now.
Matters related to removal or disqualification of directors are handled under other sections, notably:
Section 167 – Vacation of office of director
Section 164 – Disqualifications for appointment of director
Section 241 & 242 – Powers of Tribunal in cases of oppression and mismanagement
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