Section 201 - Avoidance of provisions relieving liability of officers and auditors of company. - Companies Act, 1956

Avoidance of provisions relieving liability of officers and auditors of company. 201. (1) Save as provided in this section, any provision, whether contained in the articles of a company or in an agreement with a company or in any other instrument, for exempting any officer of the company or any person employed by the company as auditor from, or indemnifying him against, any liability which, by virtue of any rule of law, would otherwise attach to him in respect of any negligence, default, misfeasance, breach of duty or breach of trust of which he may be guilty in relation to the company, shall be void: Provided that a company may, in pursuance of any such provision as aforesaid, indemnify any such officer or auditor against any liability incurred by him in defending any proceedings, whether civil or criminal, in which judgment is given in his favour or in which he is acquitted or discharged or in connection with any application under section 633 in which relief is granted to him by the Court. [1] [(2) * * *] -------------------------------- Notes:- [1] Omitted by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000, Prior to its omission sub-section (2) read as under: as provisions relating to managing agents, etc. had become redundant after abolition of system by Act 17 of 1969. [ (2) Nothing contained in the proviso to sub-section (1) shall apply to the constituted attorney of the managing agent of a company unless such attorney is, or is deemed to be, an officer of the company ].