Companies Act Section 176 — Defects in appointment of directors not to invalidate actions taken

CHAPTER XII MEETINGS OF BOARD AND ITS POWERS

Commercial / Corporate

Summary

An act done by a person as a director will not be treated as invalid just because it is later discovered that the appointment was invalid due to some defect or disqualification, or because the appointment had already ended under the Act or the company's articles.

However, this protection does not apply to any act done by the director after the company has noticed that the appointment was invalid or had ended.

Official Text

No act done by a person as a director shall be deemed to be invalid, notwithstanding that it was subsequently noticed that his appointment was invalid by reason of any defect or disqualification or had terminated by virtue of any provision contained in this Act or in the articles of the company:

Provided that nothing in this section shall be deemed to give validity to any act done by the director after his appointment has been noticed by the company to be invalid or to have terminated.