Disqualification of Directors

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

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

Thanks.

That means The Disquilfied Director u/s 274 need not to Vaccate the office.. right..?

Yes you are right…

 

A director disqualified under section 274(1)(g) can definitely continue in the defaulting company.

Agreed with Ankur Sir

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.

In short u/s 274: 1. director can continue in the present company 2. He shall not be eligible to be appointed as director of any other public company for 5 years In section 283: 1. Applicable for the Directorship of the existing as well as fresh appointment i.e. he can not continue as direcotr even in present company I am sure now its clarified

Thanks to all