LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

directors

bijoy (student) (36 Points)

17 March 2009

i hav a doubt regarding,whether a director disqualified u/s 274(1)(g)can be reappointed in d same defaulting Co.? as d act says he is disqualified to be appointed as a director in ANY OTHER PUB CO.

Reply
Follow
Share

5 Replies

S Gopal Rao (Audit Manager) (34 Points)
Replied 17 March 2009

Originally posted by :bijoy
"	i hav a doubt regarding,whether a director disqualified u/s 274(1)(g)can be reappointed in d same defaulting Co.? as d act says he is disqualified to be appointed as a director in ANY OTHER PUB CO.	"

the act only says, the disqualified director is not eligible to appoint in any other public Companies. he may appoint as director in the existing company

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 17 March 2009

Yes he may be reappointed in same company but not in any other PLC

DR GAURAV GUPTA FCA, FCS, LL.B (COMPANY SECRETARY) (1046 Points)
Replied 17 March 2009

NO AS FAR AS THE INTENTION OF LAW IS CONCERNED HE CAN NOT BE APPOINTE AS A DIRECTOR IN THE SAME PUBLIC CO. ALSO

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 17 March 2009

Dear Bijoy,

As mentioned by Prakash, he may be appointed in the same defaulting company. Reason being he is no more a director of the same company. Law says he can not be appointed as a director of any 'other PLC'.

However, If we go by the literal interpretation of the proviso he may be appointed as a director of any other PLC if he leave the defaulting Co. before the default commence. Reason being it is mentioned in the proviso that such person shall not be allowed to appoint in other PLC for 5 years if he is still a director of a defaulting Co. (i.e. still working in the defaulting co. {Present tense}.

In simple words if he leave the company before default then there will be no question of application of the proviso. Hope this discussion will help you in your professional work.

Best Regards--Ankur Garg ankur_gargcs @ rediffmail.com

DR GAURAV GUPTA FCA, FCS, LL.B (COMPANY SECRETARY) (1046 Points)
Replied 17 March 2009

DEAR BIJOY

Dont be cofused at all, director shall be disqualified from being reappointed in the defaulting company in which he is already a director as well as in any other public co. however he will become eligible for appointment or reappointment after a period of 5 year .