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Director disqualification query u/s 274(1)(g)

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CA Prateek Garg

CA in Practice

1447 Points Posted on 05 October 2011

My Question is Related to Section 274(1)(g) of Companies Act, 1956

As per Section 274(1)(g) director of a defaulting company is disqualified only if such defaulting company is a Public company and once he became disqualified he can't be appointed asdirector of a company.(as per Starting line of Section 274)

but Proviso under clause (g) says that he can't be appointed as director of a Public Company for 5 Years from the date of default by Public Company in which he is a director.

now my Question is

Proviso disqualified a director for appointment in a Public Company only and that also for 5 years only

does it mean that he can be appointed in a Private company ?

and if he can't be appointed in a private company also then in case of Private company for which Period he can't be appointed

for 5 Years or

for whole life or

something else

Please Clarify

Thanks in Advance

Replies (2)

Prashanth

Chartered Accountant

2322 Points Posted on 06 October 2011

@ prateek garg, yes u r right he cant appointed for a period of 5 years from the date of default in any public company as per sec-247(1)(g)(A).But,he can appointed in any private company.

priyatambika

ca final student

323 Points Posted on 06 October 2011

yes he can be appointed as a director in any pvt co. The disqualification u\s 274 1(g) applies only to a director of a public co. who cant be appointed in any public co. for 5 yrs