Effect of alteration by order under section 397 and 398 :

Where an order made under section 397 or 398 involves an alteration of the Memorandum or Articles of Association of the company, the company shall not have the right to make anyalteration therein, subsequently, in a manner which is inconsistent with the order passed by the C.L.B. without its leave (section 404). Certified copies of the alteration must be filed with the Registrar. Where, an order of the C.L.B. under the foregoing section involves the termination of any of the agreement mentioned herein before, such termination shall not give rise to any claim for damages against the company for loss of office or in any other respect either under the agreement or otherwise. Further, no managing or other directors or manager whose agreement has been terminated or set aside shall, without leave of the C.L.B. be appointed in any of the above capacity in respect of the company for a period of five yearsfrom the date of the order. Any contravention of this provision is punishable with imprisonment for a term, which may extend to one year, or with a fine up to ` 50,000 or with both. Before leave is granted, the Central Government must be notified and heard (section 407).