hi
if a managing director of a private limited company term is for 5 years.if he gets disqualified in his 2nd year due to non filing of returns for 3 consecutive years. Can he continue his term for 5 years or will he need to vacate his office immediately?
kindly advice.
AS PER SECTION 164(2) OF THE COMPANIES ACT 2013, IF ANY PERSON WHO IS OR HAS BEEN THE DIRECTOR OF ANY COMPANY WHO FAILS TO FILE THE FINANCIAL STATAEMENT OR ANNUAL RETURN FOR THE CONTINOUS PERIOD OF 3 YEARS OR MORE SHALL NOT BE ELIGIBLE TO BE RE-APPOINTED AS THE DIRECTOR OF THAT SAME COMPANY OR OTHER COMPANY FOR THE PERIOD OF 5 YEARS OR MORE.
HENCE MANAGING DIRECTOR OF YOUR COMPANY HAS TO VACCAT THE OFFICE AND COMPANY SHALL FILE DIR 12 WITHION 30 DAYS FROM THE DATE OF VACCATION OF OFFICE OF DIRECTOR
Hi sir
should he vacate immediately or after his term of 5 years. Plz clarify
AS PER SECTION 164(2), AS COMPANY HAS NOT FILED ANNUAL RETURN FROM THE POST 3 YEARS WHICH LEADS TO DISQUALIFICATION OF DIRECTOR. SO AS PER SECTION 167 IF DIRECTOR INCURRES ANY OF THE DISQUALIFICATION AS PER SECTION 164, THEN DIRECTOR HAS TO VACCATE THE OFFICE IMMEDIATELY.
BUT FOR BETTER PRACTICE YOU CAN FILE THE ANNUAL RETURN OF THE COMPANY AND FILE DIR 10 FOR REMOVAL OF DISQUALIFICATION OF DIRECTOR.
BUT IF YOU ARE NOT FILING ANNUAL RETURNS FOR THE PAST 3 YEARS THEN YOU HAVE TO VACCATE THE OFFICE IMMEDIATELY AND FILE DIR 12 WITHIN 30 DAYS FROM THE DATE OF VACCATION OF OFFICE OF DIRECTOR.
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