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Re : Sec 274 of Co. Act Urgent

Jasjeet (in practice) (196 Points)

05 May 2011

Hi friends can any one guide me on my query i.e.:

if a person is appointed as a director of the company only for period of 6 months in 2005 and company was already in default in filing returns since 2000 so whether he will be disqualifed to be appointed as director in any other company as per sec. 274(1)(g) for next 5 years

any director to be covered under disqualification of sec. 274(1)(g) has to be in continuous period of 3 years atleast wherein the default of filing ANnual Return occurs?

Also confirm whether after 5 yeras lapse can he be appointed as director without any CG approval ?

Kindly provide ur valuable opions on dis issue at earliest.

Regards

Jasjeet

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3 Replies

SANTOSH SHAH (Company Secretary) (754 Points)
Replied 05 May 2011

Originally posted by : Jasjeet

Hi friends can any one guide me on my query i.e.:
if a person is appointed as a director of the company only for period of 6 months in 2005 and company was already in default in filing returns since 2000 so whether he will be disqualifed to be appointed as director in any other company as per sec. 274(1)(g) for next 5 years

In my view, the director will not be disqualified in the above case as its fresh appointment.

If director was already existing in the above case then he would have been disqualified.

or
any director to be covered under disqualification of sec. 274(1)(g) has to be in continuous period of 3 years atleast wherein the default of filing ANnual Return occurs?

Yes

Also confirm whether after 5 yeras lapse can he be appointed as director without any CG approval ?

Kindly provide ur valuable opions on dis issue at earliest.
Regards
Jasjeet

He might have to take approval , though Section doesn't mention specifically.

Because there had been a default once during the tenure of the director, so post 5 yrs

such disqualified directors appointment might require CG Approval.

Other views solicited.

regards

Santosh Shah

Jasjeet (in practice) (196 Points)
Replied 06 May 2011

Mr. SHah i had word wth others also dey are of the opinion dat moment the director appointed by the default company becomes disquilifed u/s 274(1)(g) whereas is 5 years lapesed after resignation dan no approval of central government is required . So i m litl confused so guide me further

SANTOSH SHAH (Company Secretary) (754 Points)
Replied 06 May 2011

Originally posted by : Jasjeet
	Mr. SHah i had word wth others also dey are of the opinion dat moment the director appointed by the default company becomes disquilifed u/s 274(1)(g) whereas is 5 years lapesed after resignation dan no approval of central government is required . So i m litl confused so guide me further

Mr.Jasjeet

The Existing directors of default company are no doubt disqualified. So they need to make good

by filing required annual returns etc. They cannot be appointed in any other company as director because

of default made in the existing company.

But how does that affect a new person being appointed as director in the default company.

If in his capacity as a director if he would had made default it would had been a different case.

With regard to your other question on approval of CG not required, i was not very sure.

I have clarified, and it seems there is no CG approval required after 5 yrs .

Other members views solciited.

regards

Santosh Shah