In simple words
A person cannot be or remain a Board Member if, for example, they are insolvent, convicted of an offence involving moral turpitude, unable to act, have a conflicting interest, or have abused their position. They must be heard before removal.
- What this means for you
- This protects the fairness of the Board.
- What this means for businesses
- No direct duty for businesses.
- Everyday example
- A Member who takes a large stake in a company appearing before the Board may be disqualified.
Who it applies to
The Chairperson and Members of the Board.
Related Rules
No specific rule. The text of the Act applies on its own.
Related sections
Official textas notified
Source: MeitY copy of the Gazette (CG-DL-E-12082023-248045), page 13. Printed dashes are shown as colons; the wording is unchanged.
(1) A person shall be disqualified for being appointed and continued as the Chairperson or a Member, if she:
(a) has been adjudged as an insolvent;
(b) has been convicted of an offence, which in the opinion of the Central Government, involves moral turpitude;
(c) has become physically or mentally incapable of acting as a Member;
(d) has acquired such financial or other interest, as is likely to affect prejudicially her functions as a Member; or
(e) has so abused her position as to render her continuance in office prejudicial to the public interest.
(2) The Chairperson or Member shall not be removed from her office by the Central Government unless she has been given an opportunity of being heard in the matter.