Disqualification of directors

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venkata akarsh.grandhi (Querist)
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16 December 2014 hi to all.... according to sec 164 of companies act 2013 ..... point 2 says that a director appointed in company fails to upload or failed to pay back..... (explained inshort) in this company reffered to either public or private or both... please help me... sme wat urgent... thanks in advance...

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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16 December 2014 Earlier Disqualification provided u/s 274(1)(g) was substituted by section 164(2), which affects earlier section as follows:-

a. Under Companies Act, 1956, disqualification was applicable only on the directors of the Public Companies, now word public company is being replaced by company, by virtue of this it become applicable to all companies whether public or private.
b. In clause (a) of subsection 2 the word inserted “or” instead of “and” used in section 274(1)(g) of companies act, 1956. Due to this, person will be disqualifying for appointment as director even if company in which he is already director doesn’t file either of Annual return or annual account continuously for 3 years. Earlier this disqualification incurs only if company defaults in filling both Annual account and Annual return for continuously 3 years.

c. As per Companies Act, 1956 such director shall be disqualified for appointing as director in any other public company, due to which director is still eligible to appointment in private company and reappointment in same public company. Now, The word other public company is being replaced by “that company or other company” which covers both private as well as public company including defaulting company. So, now such person will not be eligible to appointment or reappointment as director in any of the company.

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