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Director of a defaulting company

CA R. K. Pradhan (full time practice) (25 Points)

28 May 2013

dear all,

I have a pvt ltd company which is defaulted in filing annual return for the FY 2008-09. The said company has appointed Mr. A as director on 26.04.2010 and resigend on 17.02.2011 i.e. both appointment and resignation in the FY 2010-11.

My querry is wheather Mr. A is director of a defaulting company?

I also inform you that in MCA the director is showing as director of a defaulting company.

Thanking you,,,,

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3 Replies

vikash kumar singh (______) (184 Points)
Replied 28 May 2013

Dear sir,

Mr. A is director of company in default.

Director of defaulting company means director of company who made default not the director in default.

so, if any Individual is appointed as director of a company who made default, then she may be termed as "Director of defaulting companies".

for this purpose default if penalty will be levied then only company and director at that time when company made default will be penalised not the director who are appointed after company made the default.

A simple logic is this that a rabbit can not live with snake, if she is, then she is also like snake.

Thanks n Regards,

Vikash K. Singh

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CA R. K. Pradhan (full time practice) (25 Points)
Replied 28 May 2013

dear vikash,

my querry is about a defauling company and for period in which director of the said company are called as director of defaulting company?

vikash kumar singh (______) (184 Points)
Replied 28 May 2013

Sir your 1st question were "whether Mr. A is a director of defaulting company ?"

answer were yes.

now 2nd one is period in which director will be called director of defaulting comapny ?

Answer is unless company files the AR of the year in which it made default.

In order to remove the name director of defaulting company, 1st need to remove the name of company as defaulting company.

once it is done. director will no longer be termed as director of defaulting company.

Plzz note that its not director in default but its company which is in default. so, this word "defaulting" will be removed only when company files the AR of the year in which it made a default.

https://www.mca.gov.in/MCA21/faq_annualfiling2.html

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