1 [32B. Effect of notified order under Section32A.--
On the issue of a notified order under Section 32A.--
(a) in any case in which the industrialconcern is a company as defined in the Companies Act, 1956 (1 of 1956) allpersons holding office as directors of the industrial concern and in any othercase, all persons holding any office having the powers of superintendence,director and control of the industrial concern, immediately before the issue ofthe notified order, shall be deemed to have vacated their offices as such;
(b) any contract of management between theindustrial concern and any managing agent or any director or manager thereofholding office as such immediately before the issue of the notified order shallbe deemed to have terminated;
(c) in the case of an industrial concern whichis a company as defined in the Companies Act, 1956 (1 of 1956) the managingagent, if any, appointed under Section 32A shall be deemed to have been dulyappointed in pursuance of the said Act and the memorandum and articles ofassociation of the industrial concern and the provisions of the said Act andthe memorandum and articles shall, subject to the other provisions contained inthis Act, apply accordingly, but no such managing agent shall be removed fromoffice except with the previous consent of the Financial Corporation;
(d) the directors or the administratorsappointed under Section 32A shall take such steps as may be necessary to takeinto their custody or under their control all the property, effects and actionableclaims to which the industrial concern is, or appears to be, entitled, and allthe property and effects of the industrial concern shall be deemed to be in thecustody of the directors or administrators, as the case may be, as from thedate of the notified order;
(e) the directors appointed under Section 32Ashall, for all purposes, be the directors of the industrial concern dulyconstituted under the Companies Act, 1956 (1 of 1956) and such directors, or asthe case may be, the administrators appointed under Section 32A, shall alone beentitled to exercise all the powers of the directors or as the case may be, ofthe persons exercising powers of superintendence, direction and control, of theindustrial concern, whether such powers are derived from the said Act or fromthe memorandum or articles of association of the industrial concern or from anyother source whatsoever.]
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1.Inserted by Act 56 of 1956, section 17 (w.e.f. 1-10-1956).