Section 243 of Companies Act: No damages on agreement changes; reappointment restrictions and fines for violations.

Section 243 of the Companies Act, 2013, addresses the consequences of terminating or modifying certain agreements under Section 242. It stipulates that such orders do not entitle any party to claim damages or compensation from the company. Directors or managers whose agreements are terminated cannot be reappointed without Tribunal approval for five years, with the Central Government's input. Individuals deemed unfit under Section 242(4A) are barred from holding directorial positions for five years, unless permitted by the Tribunal. Violations of these provisions incur fines up to five lakh rupees. Amendments in 2019 and 2020 refined these regulations.

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