- Capital markets regulator,Securities Exchange Board of India(SEBI) has requested the government to amend the Companies Act to ensure that a director declared by Sebi as a disqualified person should immediately vacate the position.This appeal was required due to defaulter businessman Vijay Mallya’s reluctance to vacate his position as a director.
- Under the Companies Act, the office of a director becomes vacant in case of he or she being disqualified by an order of a court or a tribunal, among other reasons,but there is no explicit mention of an order by the Securities and Exchange Board of India (Sebi).
- In order to rectify this,Sebi has proposed that the Companies Act should also clearly mention that a person should vacate the office of a director if Sebi orders his or her disqualification.
- The Companies Act 2013 is an Act of the Parliament of India on Indian company law which regulates incorporation of a company,responsibilities of a company, directors, dissolution of a company
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