Default by a private company

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Chirag Jain

Article

24 Points Posted on 01 December 2016

Hi,

There is a private company (for eg 'A') which has no transactions since 2009 and has also not filled it's Annual Returns to ROC from the year 2009. Since the Director is disqualified u/s 164(2), will be the director also be disqualified from being a director in a new private company (for eg 'B') . The new company ('B') was incorporated in the year 2012. Will be the directorship in company 'B' be void since the year 2012?

Replies (5)

ankita gandhi

student

1393 Points Posted on 01 December 2016

If annual returns are not filled for 3 years continually, directors are disqualified for appiointing in any company for 5 years. Hence, u can't appoint director in 2012. After expiry of 5 years only, u can appoint such director in that or any other company.

Chirag Jain

Article

24 Points Posted on 01 December 2016

Thank you for your answer but just wanted to know what if the defaulting director becomes a director in the new company ('B') before 3 years from the default of old company ('A')?

Jatin Bajaj

1920 Points Posted on 02 December 2016

ACCORDING TO SECTION 164(2) OF THE COMPANIES ACT 2013 PROVIDES THAT NO PERSON WHO IS OR HAS BEEN THE DIRECTOR OF THE COMPANY WHICH HAS NOT FILED FINANCIAL STATEMENTS OR ANNUAL RETURNS FOR ANY CONTINOUS PERIOD OF 3 FINANCIAL YEAR OR MORE SHALL NOT BE ELIGIBLE TO BE REAPPOINTED AS DIRECTOR OF THE COMPANY OR APPOINTED IN ANY OTHER COMPANY FOR THE FURTHER PERIOD OF 5 YEARS FROM THE DATE ON WHICH THE SAID COMPANY FAILS TO DO SO

Guest

Posted on 09 December 2016

it happened in 2009 before companies act 2016.. in previous act pvt companies annual return was not mentioned as disqualification of directors... but MCA gave a notification for directors of those companies.. in order to make the default good. but that time period is over I read this in ICSI FAQ