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Defects in appointment of directors not to invalidate actions taken (Section 176 of the Companies Act, 2013)

Defects in appointment of directors not to invalidate actions taken (Section 176 of the Companies Act, 2013) :

Section 176 of the Companies Act, 2013 came into force on 12th September, 2013 which provides for Defects in appointment of directors not to invalidate actions taken. According to this section:

(i) No act done by a person as a director shall be deemed to be invalid, notwithstanding that it was subsequently noticed that his appointment was invalid by reason of any defect or disqualification or had terminated by virtue of any provision contained in this Act or in the articles of the company.

(ii) Nothing in this section shall be deemed to give validity to any act done by the director after his appointment has been noticed by the company to be invalid or to have terminated.

 

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