Section 417 Removal of Members – Companies Act 2013

Amended and updated notes on section 417 of Companies Act 2013. Detail discussion on provisions and rules related to removal of Members.

Amended and updated notes on section 417 of Companies Act 2013. Detail discussion on provisions and rules related to removal of Members.

Chapter XXVII (Sections 407-434) of the Companies Act, 2013 (CA 2013) deals with the provisions related to National Company Law Tribunal and Appellate Tribunal i.e. NCLT and NCLAT. Section 417 of CA 2013 provides for removal of Members.

Recently, we have discussed in detail section 416 (Resignation of Members) of CA 2013. Today, we learn the provisions of section 417 of the Companies Act 2013.

The provisions of section 417 are effective from 1st June, 2016. You may refer Notification No. S.O. 1934(E) dated 1-06-2016. In this article, you will learn detail of the provisions of section 417 the Companies Act 2013.

Name of ActThe Companies Act 2013
Enacted byParliament of India
Administered byMinistry of Corporate Affairs (MCA)
Number of Chapters29
Number of Sections484 (470-43+57)
Number of Schedules7
You are reading:
Chapter No.XXVII
Chapter NameNational Company Law Tribunal and Appellate Tribunal
Section No.417
Section NameRemoval of Members
Monthly Updated EditionCompany Law PDF

Section 417 of Companies Act 2013: Removal of Members

Section 417 shall come into force on 1st June, 2016 vide Notification No. S.O. 1934(E) issued dated 01.06.2016.

(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).


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