Disqualification of directors 162(2)(a)

@ Yash...firstly it is section 164(2)...and if he fails to file fs or annual return for 3 yrs continously.. Disqualification occurs.... He should filed both fs and annual returns if he doesn't attract section 164(2)

Sorry.. Its only one... If he files either fs or annual return... Disqualification doesn't occur

Can you please explain the basis of your interpretation? Since the act uses the words

No person who is director shall be reappointed or appointed in other company, if the companies fails to file the financial statements or annual returns for continuous period of three years. So normal reading of the section makes me believe that the director is disqualified if the company does not file financials statements or the company does not file annual returns. So the usage of the word OR makes it appear that if any one is also not filed disqualification will occur.

Please read section carefully... As it states that no person who is or has been a director of company which has not filed financial statements or annual returns for any continuous period of 3 yrs... Here law uses "or" word... If he files any one of them then this section not attracted... Hope u agree with me now

The section starts negatively hence he shall be disqualified if any one of the condition is satisfied. Just for the sake of clarity what would be your interpretation if the word OR is replaced by AND. Only in that case there won't be any disqualifications if any one is filed.

I am really so sorry... U make me in more confusion... Here both should hv been filed for qualifications of directors... Of any one has not been filed for continuous three years then disqualification occurs... So sorry

Sorry bro.. U r right... Here "or" covers both fs and annual returns

Ya right thanks buddy. I was actually confused since the same had been stated otherwise by a leading author and he specifically told that disqualification won't occur if any one is filed.

Bcz law starts with negative interpretation thats why it covered both.. 😀😀

Hope this case study came in may 18 final exams 😂😂😂

Both shld have been filled by the company or else disqualification will arise...

Hmmm.. Thanks mam..