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Disqualification under sec 274(1)(g)

CA Umamaheswara Rao (Chartered Accountant) (72 Points)

19 April 2012

For Eg: If ' A' is a director in XYZ company. He gets disqualification under Sec 274(1)(g) in XYZ company can he sign the annual returns of the company XYZ company.

If Possible please provide any case Law for your answers for further reference.

Thank U

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2 Replies

Srikanth M S (finalist) (88 Points)
Replied 20 April 2012

Dear Sir,

I have not come accross any case laws in this regard.. However, my view would be affirmative towards your query, because A director who is disqualified under this clause is qualified alone to be appointed in the same company, reason being the company may become directorless else.. Also the qualification may be regained only on filing of the return that is to say on curing the defect.. And no one else can do that job other than the disqualified director himself.. Its just my opinion..

May help you..

Regards,,,,,

Srikanth

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 20 April 2012

In my view you cannot sign the AR after acquiring disqualification. Once a director is disqualified under 274(1)(g), form 32 should be filed for cessation of office. After the defect is cured, the concerned can sign it.

Members may please share their opinion on this.

Regards,