(1) When the directors vote for a resolution, or approve by any other means, anything done in contravention of the provisions of this Act or any other law for the time being in force or articles, they shall be jointly and severally liable to make good any loss or damage suffered by the Producer Company.
(2) Without prejudice to the provisions contained in sub-section (1), the Producer Company shall have the right to recover from its director--
(a) where such director has made any profit as a result of the contravention specified in sub-section (1), an amount equal to the profit so made;
(b) where the Producer Company incurred a loss or damage as a result of the contravention specified in sub-section (1), an amount equal to that loss or damage.
(3) The liability imposed under this section shall be in
addition to and not in derogation of a liability imposed on
a director under this Act or any other law for the time
being in force.
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1. Ins. by Act 29 of 2020, s. 52 (w.e.f. 11-2-2021).
Section 378O Number of directors
Section 378P Appointment of directors
Section 378Q Vacation of office by directors
Section 378R Powers and functions of Board
Section 378S Matters to be transacted at general meeting
Section 378T Liability of directors
Section 378U Committee of directors
Section 378V Meetings of Board and quorum
Section 378W Chief Executive and his functions