Section 143 - Substitution of sections 46 and 47. - Finance Act, 2021

Substitution of sections 46 and 47. 143. For sections 46 and 47 of the principal Act, the following sections shall be substituted, namely:- Defects in constitution of Corporation or Committees or in appointment or nomination of directors not to invalidate acts or proceedings. 46. (1) No act or proceeding of the Corporation or of its Board or any Committee thereof shall be called in question on the ground merely of the existence of any vacancy or defect in the constitution of the Corporation or the Board or such Committee, as the case may be. (2) No act done by an individual as a director shall be deemed to be invalid, notwithstanding that it was subsequently noticed that his appointment or nomination, as the case may be, was invalid by reason of any defect or disqualification or had terminated by virtue of any provision contained in this Act: Provided that nothing in this sub-section shall be deemed to give validity to any act done by such individual as director after his appointment or nomination, as the case may be, has been noticed by the Corporation to be invalid or to have terminated. Protection of action taken under this Act. 47. (1) No suit, prosecution or other legal proceeding shall lie against any director or employee of the Corporation for anything which is in good faith done or intended to be done in pursuance of this Act or of any rules or regulations made thereunder. (2) A director who is not a whole-time director shall be held liable only in respect of such acts of omission or commission of the Corporation which had occurred with his knowledge, attributable through Board processes, and with his consent or connivance or where he had not acted diligently. Explanation .-For the purposes of this sub-section, the reference to Board shall include Committees of the Board. .