CA.Pravinchandra (Executive (F&A)) (2387 Points)
15 June 2010
Whether penalty u/s 283 attracted to Director Disqualifid u/s 274 (1) (g) ?
If yes ,
then what is the difference between Disqualfication and Vaccating the office of Director ?
Difference between bot the section:
Section 274(1)(g) applies to the director for fresh appointment in the other Companies
where as
Section 283 is applicable for the Directorship of the existing as well as fresh appointment...
Section 274(1)(g) is applicable to the director of the Public Companny
where as
Section 274(1)(g) is applicable to both Private and public Company...
Section 274 defaulting director can not be appointed as the Director in any Company
where as
Section 283 defaulting Director can be appointed as the Director in other Companies...
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If you need further clarification than contact me
CS Ankur Shah (Practicing Company Secretary)
“Guru Gautam” Bungalow, Inside Parshwa Tower,
Nr. Shyamal Cross Road, 132ft. Ring Road,
Satellite, Ahmedabad – 15
Contact: + 91-90330 03922, 94276 33901
E-mail: ankur @ csankur.com, ankurjewel @ gmail.com
Blog: csankur.blogspot.com
Website: www.csankur.com
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 16 June 2010
Dear Pravin,
Let me give you a bit to the point answer.
NO penalty provided by section 283 is not at all applicable to a director disqualified under section 274(1)(g). Reason being disqualification under section 274 is not a ground of automatic vacation under section 283.
Revert if there is any doubt.
Thanks
CA.Pravinchandra
(Executive (F&A))
(2387 Points)
Replied 16 June 2010
Thanks.
That means The Disquilfied Director u/s 274 need not to Vaccate the office.. right..?
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 16 June 2010
Yes you are right…
A director disqualified under section 274(1)(g) can definitely continue in the defaulting company.
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17848 Points)
Replied 16 June 2010
Ofcourse Ankur Sir is absolutely right.
Section 274(1)(g) provides only that if the director is disqualifed he shall not be eligible to be appointed as a director of any other public company for a period of 5 years.
Thus, he may continue in that public company and may also be appointed in any other private companies.
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 16 June 2010
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