Section 274(1)(g) applicability to sick company

This query is : Resolved

Yash saxena (Querist)
Follow

03 October 2012 The director appointed by BIFR are out of the purview of Section 274(1)(g) but my query is what about other directors who are in the company which has came within the scope of Sick Industrial Companies act and declared sick unit.
Whether section 274(1)(g)is applicable to directors other than directors appointed by BIFR who were already directors before falling within the meaning of Sick unit?

Ajay Mishra

Ajay Mishra (Expert)
Follow

03 October 2012 Hi

Department Circular No. 11/2001, dated 25-05-2001-The matter whether director appointed under section 16(4) of the Sick Industrial Companies(Special Provisions) Act, 1985 (SICA) by the BIFR shall be liable to be disqualified under section 274(1)(g) .
In view of the over-riding effect of the provision of section 16(5) of SICA over Companies Act, 1956 it is hereby clarified that , Special Director appointed under section 16(4) of SICA shall not be liable to be disqualified for appointment as director by virtue of section 274(1)(g) of the Companies Act, 1956.

Message likes : 1 times

Yash saxena

Yash saxena (Querist)
Follow

05 October 2012 Sir,
What about the directors OTHER THAN special directors appointed under section 16(4)of SICA in a sick company?
Are they liable to be disqualified under section 274(1)(g)?

Ajay Mishra

Ajay Mishra (Expert)
Follow

05 October 2012 Hi

I will suggest you to read my article, which you find below link, it may help you:

https://www.caclubindia.com/articles/a-note-on-disqualification-of-a-director-under-section-274-1-g-of-the-companies-act-1956-13579.asp#.UG62iLJlS8o

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now