(1)

The Central Government may remove from office any director who—

(a) is, or at any time has been, adjudged as insolvent; or

(b) has become physically or mentally incapable of acting as a director; or

(c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a director; or

(e) has, in the opinion of the Central Government, so abused his position as to render his continuance in office detrimental to the public interest; or

(f) has, for any reason, been removed or dismissed from the service of—

(2)

No such director shall be removed under clause (d) or clause (e) of sub-section (1) unless he has been given a reasonable opportunity of being heard in the matter.

(3)

Any director who is elected or nominated as a Member of Parliament or of any State legislature, shall cease to be a director from the date of such election or nomination, as the case may be.

(4)

The disqualifications or removal under this section shall not take effect—

(a) for thirty days from the date of the adjudication, sentence or order; or

(b) where any appeal or petition is preferred within thirty days against the adjudication, sentence or conviction resulting in the sentence or order, until the expiry of seven days from the date on which such appeal or petition is disposed of.