Corporate law applicability

Queries 246 views 1 replies

Dear Users,

Section 164(2) of CA2013 deals with disqualifications....in whcih, if a company do not file annual returns for a 3 consecutive financial years the Directors get disqualified and the Disqualification to be stated in Audit Report under sec 143 (3) clause g.

My query is 

A company incorporated in FY 11-12 has not filed its Annual Returns till now (i.e., FY 15-16) and iam thinking to file ROC returns from previous pending years.....

Does the directors are disqualified as per CA2013?

My view

The new section came into effect from 01.04.2014, earlier of the new act CA1956 has not specified any disqualification of directors if company do not file returns to roc...Thus the period of "3 consecutive Financial Years should be calculated from 01.04.2014 onwards for all existing companies" incorporated before the new act.... Thus Directors are not disqualified.

So pls clarify, my view is Right of Wrong with reasons.

Replies (1)

In my opinion the directors are disqualified.

Even though the act came in force on 01.04.14, it doesn't mean that the defaulting years will commence after the commencement of act for existing companies.

However filing of annual returns before the audit report, might provide relief.


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