11 April 2009
Sir, section 274 (1) (g) of companies act, 1956..... is this section applies to private companies as well or only for public companies? Whether a director of private co. if disqualified on the same terms as mentined in above section then can he be appointed as a director in another private company?
11 April 2009
DISQUALIFICATION APPLICABLE FOR APPOINTMENT OF A DIRECTOR OF A PRIVATE COMPANY
Disqualification under section 274 (1) (g) is applicable for appointment of directors both in public as well as private companies. Thus, a person who has attracted disqualification, will not be capable of being appointed as a director even of a private company.
11 April 2009
In your case, the director of a private co is eligible to become a director of another private company.
Sec 274 (1) (g) says: -
A person shall not be capable of being appointed director of a copany if:
-- such person is already a director of a public company which
(i) has not filed the annual accounts........ and;
(ii) has failed to repay its deposits..........
This section is pretty clear that only if a person is a director in public company which has made default as mentioned above, can not become director in any company.
CAclubindia
