Sec 274 1(g)

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Shanib (Querist)

01 December 2009 A director who has appointed in a public company in fourth year after failure of 3 continuous financial year of filing accounts and returns-

Whether can he be appointed as a director of another public company within five years from the failure...?

Ankur Garg

Ankur Garg (Expert)

02 December 2009 Hi,

Default occurs exactly after the expiry of third financial year. If a new director appointed in the fourth year then section 274(1)(g) is not applicable to such new director.

So he can be appointed as a director of another public company. However this is my opinion. Views of other experts solicited.

Regards

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

02 December 2009 According to section 274(1)(g) of the Companies Act, 1956, a person would suffer from the disqualification mentioned in sub clause (A) & (B) thereof only to the extent of his/her appointment or re-appointment in any public company (including the public company in respect of which the default has occured). Till the time occasion for such appointment or -re-appointment occurs, the concerned person can continue to hold office of director in all public companies (including the public company in respect of which the default has occured) in which such person is director;he/she need to vacate the office as there is such requirement either in this section or in section 283.

Such person is disqualified from being appointed as a director of any other public company for a period of 5 years from the date of default.

Moreover, the expression"such person is already a director of a public company", indicates that if a person who has suffered from this disqualification in respect of a public company has resigned his/her office of director in that company, then he/she will not be disqualified for appointment/re-appointment in any public company.

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