Shipping Development Fund Committee (Abolition) Act,1986
Act No : 66
Section :
Effect of notified order.
11. Effect of notified order. (1) On the issue of a notified
order under section 10--
(a) if the shipowner is a company as defined in the
Companies Act, 1956 (1 of 1956), all persons holding office as
directors of the shipowner, and in any other case, all persons
holding any office having the powers of superintendence,
direction and control immediately before the issue of the
notified order, shall be deemed to have vacated their offices as
such;
(b) any contract of management between the shipowner and any
director or person referred to in clause (a) holding office as
such immediately before the issue of the notified order shall be
deemed to have been terminated.
(2) The directors or administrators appointed under section 10
shall take such steps as may be necessary to take into their custody
or under their control, the property, effects and actionable claims to
which the
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shipowner is, or appears to be, entitled, and all the property and
effects of the shipowner shall be deemed to be in the custody of the
directors or administrators, as the case may be, as from the date of
the notified order.
(3) Subject to the other provisions of this Act, the directors
appointed under section 10, shall, for all purposes, be the directors
of such company duly constituted under the Companies Act, 1956 (1 of
1956), and such directors shall alone be entitled to exercise all the
powers of such directors.
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