Disqualfication of directors

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Jyothis

Article

489 Points Posted on 04 November 2015

How sub(2) of 164 affects disqualification of a director.

Say,

Mr.A is a director of Xltd,Yltd.

Yltd has not filed its Roc/Financial statement for continous period of more than 3 years.

Will Mr.A be disqualified as appointment as a director of Xltd.

If Mr.A is disqualified how can Xltd file its Roc Filing,since certificate u/s 164 cannot be obtained from Mr.A.

Xltd has 4 directors in total,in which 2 directors may be disqualified on the grounds non filing of Roc of Yltd(Company in which directors have share holding)

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Jyothis

Article

489 Points Posted on 04 November 2015

No person who is or has been a director of a company which—

(a) has not filed financial statements, or

annual returns for any continuous period of three financial years;

(b) has failed to repay the deposits accepted by it, or pay interest thereon or

to redeem any debentures on the due date or pay interest due thereon or

pay any dividend declared and

such failure to pay or redeem continues for one year or more,

shall be eligible to be re-appointed as a director of that company or appointed in other company for a period of five years from the date on which the said company fails to do so.