164(2) disqualification of directors

This discussion explores whether Section 164(2) of the Companies Act 2013, regarding director disqualification, applies to nominee directors. While the Act defines a director as any appointee to the Board, and Section 164(2) disqualifies directors who fail to comply with its provisions, a key question arises about nominee directors' inclusion. The Institute of Chartered Accountants of India (ICAI) has taken the view that nominee directors are not disqualified under this section, a stance that appears to differ from a strict interpretation of the Act's definitions.