Sec. 274 (1) (g)

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Guest

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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?

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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11 April 2009 director of a private company is not disqualified but public co. is disqualified for appointment in a pvt. co.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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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.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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11 April 2009 https://www.vmandaonline.com/ARTICLES/274-Disqualification.doc

VINEESH KHANNA

VINEESH KHANNA (Expert)
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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.

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