Section 243 — Consequence of termination or modification of certain agreements

(1) Where an order made
under section 242 terminates, sets aside or modifies an agreement such as i s referred to in sub-section (2)
of that section,—
(a) such order shall not give rise to any claims whatever against the company by any person for
damages or for compensation for loss of office or in any other respect either in pursuance of the
agreement or otherwise;
(b) no managing director or other director or manager whose agreement is so terminated or set aside
shall, for a period of five years from the date of the order terminating or setting aside the agreement,
without the leave of the Tribunal, be appointed, or act, as the managing director or other director or
manager of the company:
Provided that the Tribunal shall not grant leave under this clause unless notice of the intention to apply
for leave has been served on the Central Government and that Government has been given a reasonable
opportunity of being heard in the matter.
3[(1A) The person who is not a fit and proper person pursuant to sub -section (4A) of section 242 shall
not hold the officer of a director or any other officer connected with the conduct and management of the
affairs of any other officer connected with the conduct and management of the affairs of any company for
a period of five years from the date of the said decision:
Provided that the Central Government may, with the leave of the Tribunal, permit such person to hold
any such office before the expiry of the said period of five years.
(1B) Notwithstanding anything contained in any other provisions of this Act, or any other law for the
time being in force, or any contract, memorandum or articles, on the removal of a person from the officer
of a director or any other officer connected with the conduct and management of the affairs of the company,
that person shall not be entitled to, or be paid, any compensation for the loss or termination of officer.]
(2) Any person who knowingly acts as a managing director or other director or manager of a company