Disqualification under 164(1)

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Sudhir Todkar

CS Professional

632 Points Posted on 23 April 2017

1Q) If a director is imprisonment for equal to 6 months under section 164(1) When he/she will eligible to reappoint as director immediately after expiry of 6 months or after expiry of 5 years from such sentence? Act says imprisonment not less than 6 months (i.e. More than 6 months).

2Q) If a director has not paid any call of any shares of the company and six months has been expired from the last due date.

Whether he disqualify in that company only or in all Company in which he is a director ?

Please clarify my doubts.

Thank you

Replies (3)

Indhu A

24 Points Posted on 23 April 2017

1. As per Section 164 (1) (d) of Companies Act, 2013
If a director is convicted and imprisoned by a court for a period of 6 months or above, he will become disqualified to act as a director.

However after 5 years from the date of expiry of the sentence, he will become eligible for appointment as a director.

Indhu A

24 Points Posted on 23 April 2017

2. as per section 164(1) (f) director who has not paid any calls in respect of any shares of the company held by him whether alone or jointly with others not 6 months have elapsed from the last day fix it for the payment of the call, he will become disqualified to act as a director in that company alone.

Sudhir Todkar

CS Professional

632 Points Posted on 23 April 2017

Thanks for replying to my query.

It is clearly mentioned NOT LESS THAN 6 MONTHS only which means MORE THAN 6 MONTHS. So he can become director when he comes out from jail if he imprisonment for equal to 6 months..

For your reference if you see further point under same clause if he imprisonment for 7 YEARS OR MORE here it's clearly given 7 or more but not in case of 6 months or more.

And who disqualify under 164 cannot become director in any company same in case of default to pay his call..