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Disqualification of Director

Others 460 views 1 replies

Arvind Sharma

ACA

1432 Points Joined May 2009

Dear All..,

I have doubt about eligibility to be elect as Director after making default...

1. Whether a Director who is convicted for an offence and sentenced for a period not less than 6 months, and 5 years has been elapsed., whether such person will be eligible after that 5 years...???

2. Whether a Director who failure to pay calls on due date is eligible to be appointed as director after 6 months (as section 274 he has not paid any call and six months have elapsed from the last day fixed for the payment of the call ..

As per me., in first case., person will be eligible after that 5 years.., but in second case person shall disqualified for life time...

Please also state whether disqualification u/s 274 is life time (except that above 1st case) or not..??

I have no doubt about 274(1)(g)... (which is applicable in case of Pub to Pub Co)

Replies (1)

Yogesh Shah

Managing Corporate Finance

1051 Points Joined March 2009

Hi Arvind,

1) Yes very much. After five years such person can become director in any company.

2) Such person can’t be director in THAT company (company whose call money he has not paid). In my opinion, he can’t be director in THAT company for lifetime.

Dude Arvind … same as you I am very much sure about my first answer but I am eagerly waiting for other replies in respect of my second answer.