Fast track exit scheme

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This discussion explores whether a private company with a disqualified director can apply for the Fast Track Exit (FTE) scheme. It clarifies that such a company is ineligible because it fails to meet the minimum director requirement under Section 149(1)(a). All directors must be active for the FTE form to be filed and accepted.

K.GANESH KARTHI

K.GANESH KARTHI (Querist)
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24 March 2021 Sirs,
Whether a Private Company (one of its Director being disqualified u/s.164[2]) can apply for FTE Scheme?
Can we file FTE form and even if it is filed, will it be accepted?!

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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24 March 2021 The company cannot seek FTE schme, if it has only two directors out of which one is disqualified since the company has violated the requirement of minimum number of directors as per section 149(1)(a).

K.GANESH KARTHI

K.GANESH KARTHI (Querist)
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24 March 2021 OK Sir, It seems you are absolutely correct!
Nice to have reply from you!
Thank you!