Section 160, 161, 164, 165, 167 and 168 of Companies Amendment Act 2017

Amendment of section 160 of Companies Act 2013

50. In section 160 of the principal Act, in sub-section (1), the following proviso shall be inserted, namely:- ''Provided that requirements of deposit of amount shall not apply in case of appointment of an independent director or a director recommended by the Nomination and Remuneration Committee, if any, constituted under sub-section (1) of section 178 or a director recommended by the Board of Directors of the Company, in the case of a company not required to constitute Nomination and Remuneration Committee.".

Amendment of section 161 of Companies Act 2013

51. In section 161 of the principal Act,- (i) in sub-section (2), after the words "alternate directorship for any other director in the company", the words "or holding directorship in the same company" shall be inserted; (ii) in sub-section (4),- (a) the words "In the case of a public company," shall be omitted; (b) after the words "meeting of the Board", the words "which shall be subsequently approved by members in the immediate next general meeting" shall be inserted.

Amendment of section 164 of Companies Act 2013

52. In section 164 of the principal Act,- (i) in sub-section (2), the following proviso shall be inserted, namely:- "Provided that where a person is appointed as a director of a company which is in default of clause (a) or clause (b), he shall not incur the disqualification for a period of six months from the date of his appointment."; (ii) in sub-section (3), for the proviso, the following proviso shall be substituted, namely:- "Provided that the disqualifications referred to in clauses (d), (e) and (g) of sub-section (1) shall continue to apply even if the appeal or petition has been filed against the order of conviction or disqualification.".

Amendment of section 165 of Companies Act 2013

53. In section 165 of the principal Act, in sub-section (1), the Explanation shall be renumbered as Explanation I and after Explanation I as so numbered, the following Explanation shall be inserted, namely:- "Explanation II.-For reckoning the limit of directorships of twenty companies, the directorship in a dormant company shall not be included.".

Amendment of section 167 of Companies Act 2013

54. In section 167 of the principal Act, in sub-section (1),-
(i) in clause (a), the following proviso shall be inserted, namely:-
"Provided that where he incurs disqualification under sub-section (2) of section 164, the office of the director shall become vacant in all the companies, other than the company which is in default under that sub-section.";
(ii) in clause (f), for the proviso the following proviso shall be substituted, namely,-
"Provided that the office shall not be vacated by the director in case of orders referred to in clauses (e) and (f)-
(i) for thirty days from the date of conviction or order of disqualification;
(ii) where an appeal or petition is preferred within thirty days as aforesaid against the conviction resulting in sentence or order, until expiry of seven days from the date on which such appeal or petition is disposed of; or
(iii) where any further appeal or petition is preferred against order or sentence within seven days, until such further appeal or petition is disposed of.".

Amendment of section 168 of Companies Act 2013

55. In section 168 of the principal Act, in sub-section (1), in the proviso, for the words, "director shall also forward", the words "director may also forward" shall be substituted.