Power to remove Chairman, Director, etc., of the insurer
34C. (1) If, after the completion of a special audit under section 12A or investigation under section 33, the Chief Controller has reason to believe that a person holding the office of the Chairman, a director, manager or principal officer, by whatever name called, of an insurer has contravened the provisions of any law and that the contravention is of such a nature that the association of such person with the insurer is or is likely to be detrimental to the interests of the insurer or of the policy-holders, or is otherwise undesirable, the Chief Controller shall, after giving such person an opportunity of being heard, make a report of the fact to the Government.
(2) If, after considering a report under sub-section (1), the Government is satisfied that the association with the insurer of the person in respect of whom the report has been made is or is likely to be detrimental to the interests of the insurer or of the policy-holders, or is otherwise undesirable, it may make an order that such person shall cease to hold the office with the insurer with effect from such date as may be specified in the order, and thereupon that office shall, with effect from the said date, become vacant.
(3) An order under sub-section (2) in respect of any person may also provide that he shall not, without the previous permission of the Government in writing, in any way, directly or indirectly, be concerned with, or take part in the management of, the insurer or any other insurer for such period not exceeding five years as may be specified in the order.
(4) No order under sub-section (2) shall be made in respect of any person without giving him an opportunity of being heard unless the Government is of the opinion that any delay in making the order would be detrimental to the interests of the insurer or of the policy-holders.]