Ensuring Fairness In Corporate Governance: Analyzing The Principles Of Natural Justice And Section 164(2) Of The Companies Act
Sriyaa Sambasivam & Leelavanthi. S, BA LLB, SASTRA Deemed to Be University, School of Law
ABSTRACT
This abstract presents a detailed examination of the intricate relationship between the principles of natural justice and the statutory provisions governing the disqualification of directors under Section 164(2) of company law. The study aims to elucidate the intersection of legal principles and regulatory frameworks that govern the removal of directors in corporate entities. The paper begins by providing a comprehensive overview of the principles of natural justice, emphasizing their fundamental role in ensuring fairness and impartiality in administrative and legal processes. Subsequently, it delves into the specific provisions outlined in Section 164(2) of relevant corporate legislation, which prescribes the conditions under which a director may be disqualified from serving on the board. The analysis explores the jurisprudential evolution of natural justice in the context of director disqualification proceedings, examining landmark legal cases that have shaped the interpretation and application of these principles. Additionally, the paper scrutinizes the legislative intent behind Section 164(2), seeking to elucidate the rationale and objectives driving the disqualification provisions. In conclusion, this paper contributes to the scholarly discourse on corporate governance by offering a nuanced analysis of the interplay between the principles of natural justice and the statutory mechanisms regulating the disqualification of directors.
Keywords: Disqualification, Principles of Natural Justice, Section 164(2) of Companies Act, audi altrem partem, Show-cause notice, Prior Notice, etc.
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