(1) On the issue of a notified order under section 3 appointing a Board of Control to take over the management of/the undertaking of the company,—
(a) all persons in charge of the management, including persons holding offices as directors or managers or any other managerial personnel of the company 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 company and any managing agent or any director or any other managerial personnel thereof holding office, ae such immediately before the issue of the notified order shall be deemed to have terminated;
Effect of notified order issued under section 3.
1 of 1956.
(c) the Board of Control shall alone be entitled notwithstanding anything contained in the Companies Act, 1956, to 22 4 ™ E GAZETTE OF INDIA EXTRAORDINARY [PART II exercise all the powers of the Board of directors of the company (including the powers to sell or otherwise dispose of any ships or other properties or assets of the company) whether such powers are derived from the said Act or from the memorandum or articles of association of the company or from any other source;
(d) as from the date of the notified order, all the properties, assets and effects of the company shall be deemed to be in the custody of the Board of Control who shall, as soon- as may be after such date, take all such steps as may be necessary to take into its possession or control all such properties, assets and effects and all actionable claims to which the company is or appears to be entitled.
(2) Subject to the other provisions contained in this Ordinance and to the control of the Central Government, the Board of Control shall take such steps as may be necessary for the purpose of efficiently managing the business of the company and shall exercise such other powers and have such other duties as may be prescribed.
Power of Board, of Control to appoint managing agent.