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Sacked directors may be barred for 5 years
BS Reporter in Mumbai | January 10, 2009 15:37 IST
It may be the end of a boardroom for life for Ram Manyampati, the interim chief executive officer of Satyam Computer Services [Get Quote] and the two independent directors T R Prasad and V S Raju.
Section 388E of the Companies Act, 1956, any person against whom an order of removal from office has been passed, cannot be associated with the management of another for five years from the date of removal.
An exception can be made if the central government gets a go-ahead from the Company Law Board to waive the condition.
In addition, the directors and other personnel dealing with the management of a company's affairs are not be entitled to any compensation for the loss or termination of office.
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