(Effects of the Order of Tribunal)
1. Effect of order on memorandum and articles of order.- If the Tribunal makes an order to a company for the prevention of injustice and mismanagement and as a result of which any change has to be made in the memorandum and articles of the company, then the company shall within the limits of that order make necessary provisions therein. can make changes. But the company cannot make any such change in them which is not in accordance with the order. The amendment to the Memorandum and the Articles of Association in accordance with the order of the Tribunal shall have the same effect as changing them in accordance with the provisions of the Companies Act.
2. Effect on the managerial officers- If as a result of the order of the Tribunal, the contract made with the managerial officers (eg, director, managing director, manager etc.) is rescinded or any improvement or alteration is made in it and as a result if If any person is removed from his post- (1) he shall not be compensated in any way, and (2) he shall not be appointed to the post for the next five years. 3. Punishment – If any director, managing director or manager violates the above arrangements
shall be punished with imprisonment of either description for a term which may extend to one year, or with fine which may extend to ₹ 5,00,000, or with both.
can be given.