Private Co. Director Disqualification

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If a pvt. co. didn't file its financial statementa and annual returna for last 3 years, then whether the director disqualification mentioned under 164(2) is attracted on such co. or not??
Replies (5)

YES     

But section wording says about the disqualification regarding reappointment of dir. in defaulting co. and we know reappointment provision of dir u/s 152 (6),(7) are applicable to public co not on pvt. co... in such combined reading can we save the director from disqualification??
No section 164(1 ) provides grounds on the basis of which a person is disqualified for appointment and re-appointment as director of a company.section 152(6) provides rotation of director only when articles abstains of a public company.
sorry, but my issue is different, as in a pvt co there is no such reappointment requirment as in a public co. and we know that 164(2) disqualification attracts for reappointment of a director in defaulting co.
now my issue is if a defaulting co. is a pvt. co. then, whether the director of such pvt. co continues or not??

If any person has become disqualified as director due to the reason that the company has not filed annaul documents, shall cease to hold the post of directorship for the period of five years in the defaulting company also and he is not entitled to be appointed again in the same company and also not entitiled to be appointed as director in any other companies for the period of 5 years.

This interpretation is wrong that the disqualified director is eligible to continue as director in the defaulting company but not entitled to be appointed in other companies. He also cease to act as director of the defaulting company from the date of his disqualification.

 

 


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