Section 417 of Companies Act, 2013

417. Removal of Members

(1) The Central Government may, after consultation with the Chief Justice of

India, remove from office the President, Chairperson or any Member, who—

(a) has been adjudged an insolvent; or

(b) has been convicted of an offence which, in the opinion of the Central

Government, involves moral turpitude; or

(c) has become physically or mentally incapable of acting as such President, the

Chairperson, or Member; or

(d) has acquired such financial or other interest as is likely to affect prejudicially

his functions as such President, the Chairperson or Member; or

(e) has so abused his position as to render his continuance in office prejudicial

to the public interest:

Provided that the President, the Chairperson or the Member shall not be removed on

any of the grounds specified in clauses (b) to (e) without giving him a reasonable opportunity

of being heard.

(2) Without prejudice to the provisions of sub-section (1), the President, the Chairperson

or the Member shall not be removed from his office except by an order made by the Central

Government on the ground of proved misbehaviour or incapacity after an inquiry made by a

Judge of the Supreme Court nominated by the Chief Justice of India on a reference made to

him by the Central Government in which such President, the Chairperson or Member had

been informed of the charges against him and given a reasonable opportunity of being

heard.

(3) The Central Government may, with the concurrence of the Chief Justice of India,

suspend from office, the President, the Chairperson or Member in respect of whom reference

has been made to the Judge of the Supreme Court under sub-section (2) until the Central

Government has passed orders on receipt of the report of the Judge of the Supreme Court on

such reference.

(4) The Central Government shall, after consultation with the Supreme Court, make

rules to regulate the procedure for the inquiry on the ground of proved misbehaviour or

incapacity referred to in sub-section (2).

Complete: companies-act-2013