22 August 2011
I was reading 13th Edition by CA Munish Bhandari for CA Final. As per this edition, Sec. 274(1)(g) is not applicable to Private Limited Co.'s .
So, it menas that director of Public Co. defaulting U/s 274(1)(g) can become director in pvt co. ?
or a director of a pvt. co is not disqualified as per Sec 274(1)(g) ?
22 August 2011
Concur with the view of Bandari Ji because as per clause 3 of Companies (Disqualification of Directors under section 274(1)(g) of the Companies Act, 1956) Rules, 2003 it shall apply to all public limited companies registered under the Companies Act, 1956.
So, 274(1)(g)is applicable only in case of public limited companies.
22 August 2011
"A person shall not be capable of being appointed director of a Company"
and in section 274 (1)(g), there is mention of public limited Company for disqualification in respect of default.
Hence we can say that section 274 is applicable to all the companies but because of specific inclusion of word public company in clause (1) g. This is applicable only to pvt. company
**sec 274 (1)(g) of the companies act is not applicable to Govt. Company and small shareholder director.
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