164(2) applicable to pvt co or not

While Sections 164 and 167 came into force on April 1, 2014, the disqualifications under Section 164 (2) cannot become applicable as on April 1, 2014 for any annual filings not done in any of the previous financial years. Section 164 (2) curtails the right of directors of such companies to continue as directors, casts a new burden, imposes a new liability on such directors for having defaulted in filing financial statements for any 3 continuous financial years. In view of Section 164 (2), the disqualification will get attracted in case of non filings made for years commencing from FY 2013-14 onwards. The remedies available to a director are to either regularize the filings or make an application for regarding such company as a dormant company under Section 455 of Act, 2013. However, it will be inappropriate to regard that this will lead to immediate vacation of office under Section 167 (1).

So as per my knowledge of Section it is applicable to Private Company also.

Response :-

APPLICABILITY OF SECTION 164(2) TO PRIVATE COMPANIES OR PUBLIC COMPANIES

Disqualifications as provided under section 164(2) of the Act are applicable to all companies irrespective of their category and status ! The private companies may add such other disqualification in its Articles in addition to the statutory disqualifications provided under the Act. Further, as far as the applicability of Section 164(2) to the private companies are concerned here it would be relevant to refer the circular dated 5th June 2015 wherein the Ministry of Corporate Affairs have clarified the sections which are exempted in case of Private Companies.