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Disqualification of director

C Reddy (Entreprenuer) (133 Points)

19 April 2017

Dear Members,

According to Companies Act 2013, if a person is a director in a company that has not filed its Annual accounts and returns for 3 consecutive years, he is disqualified to be a director.

If at a later date, the company updates all the records up-to-date or gets its name removed from ROC records officially, if there are no operations, will the director still be disqualified or eligible for appointment as director?

Please advice.

Regards

Chandana

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2 Replies

Jatin Bajaj (CS) (2928 Points)
Replied 21 April 2017

As per the provisions of section 164(2) of the companies act 2013, if the person who has been or was the director of the company who has failed to file the financial ststement or annual returns for a period of 3 consequtive financial year , then he shall not be eligible for appointment of director in any other company or in the same company for a period of 5 years

Sudhir Todkar (CS Professional) (1021 Points)
Replied 22 April 2017

Even if he updates all the records up-to-date or gets its name removed from ROC records officially, if there are no operations, He is not eligible to continue or reappointment as director for 5 years from the date of default in that company as well as in another company.

Apart from this private company may by its article restrict additional disqualification including 164(1) & (2).