thanks to dipu diwaker who posted this and to u bhargava sir, bt cn anybody clear tht if a director defaulted in A Ltd , because of which he is disqualified for appointment in all other public company then hw cn  repappointment of A is possible in the same public co where default occurs in his presence.

I am also confused now, is there any case law related to this which cn clear this section...

The Situation of No director is nt here as per my thinking

Disqualification occurs in 274 (1)(g) , nt vacancy.

So if a Public Co has 5 (Named as A,B,C,X,Y,Z ) Director. Their tenure is fixed. Let A,B,C ws appointed on 1/4/2000 and X,Y,Z was appointed on 1/4/2001 .all 6 ws appointed for 5 yrs. default occurs on 30.06.2001. All the director cn complete their tenure and then new directors cn be appointed in tht co.

(Qualified) Thanks to all sirs for this useful discussion......

So M C Bhandari is not correct?!?!?!?

Tragic.

Please do not misinterpret.....

For this purpose re-appointment has two meanings....

1. Re-appointment in running i.e. re-appointment after rotational retirement etc

2. Re-appointment cum re-joining after quitting the company through resignation or some other mode.

In first case Re-appointment in the defaulting company is allowed bcoz this public company does not qualify for the words "other public company" bcoz here defaulting director is almost continuing his employment after the formal rotational retirement.

In second case appointment in the same defaulting company is not possible bcoz now this public company qualify for the words "other public company" and he is re-joining the company.
 

Regards

section is applicable to public company. as per my knowledge, such director can not be appointed in other public co. & no re-appointment can be done in the same defaulting co. also for a period of 5 years.

thank u.

Section 274 (1) (g) states that a director of a public company cannto be appointed in any other PUBLIC company in case of default by the company as stated in seciton 274(1)(g)clause (a) or (b). That implies that the director is not disqualified for appointment in the same public company and also not for private company.

If Section 274 (1)(g) prohibited the director being appointed as director in the same company then it would give rise to a situation where the company may be rendered directorless.

Originally posted by : Dipu Divakar
	i want to know whether director disqulified u/s 274(1)(g) can be reappointed in the same company / companies? ["a director disqualified u/s 274(1)(g) shall not be eligible to be appointed in any other public companies"- this is what mentioned in the text. ]   someone pls help thanx in advance

However, he is not eligible for reappointment till his disqualification period of 5 years is over.

@ archana

As per Sec 255 of companies Act atleast 2/3 of total directors should be rotational directors,

who shall retire at the AGM and are eligible for re appointment. So, there no concept of fixed time of directorship.

More over as per Sec 265 proportionate representation if the article provide for the proportional representation directors can be apponted who hl office for a period of 3 years and cannot be removed in the AGM or under the menthod of Sec 284

And and out of total rotational directors atleast 1/3 should of rotational directors retire in the AGM and are eligble for re appointment.

Actually as ankur sir said 2 types of disqualification, i ws nt talking about reappointment after retirement of director through rotation. I ws saying about the reappointment of director after his total tenure ends.

Like if a director is appoined for 5 years and he is rotational director, then after default occurs, he may be reappointed (if he retires due to rotation) in same co within his tenure of 5 years bt once his tenure ends he cant be reappointed in same co.

Am i right nw, plz tell ?

And Also for attracting disqulaification U/s.274(1)(g) the director shoul be the director at the time of default .If he resign befor the date this disqualification does not occur

Ex.

if the due date of payment of dividends, or deposits , or debentures is 31/6/00 and the default cotinue till 31/6/01, then all the directors who hold office as on 31/6/00 an till 31/6/01 are dis qualified

Example. if A is appointed on 1/4/2000 and resigned on 1/4/2001 -he is not dis qualified , since he is not director as on 31/6/01

B who was apponinted on 30/8/2000 and hold office as on 31/6/01 is also not disqualified.

C who hold office on 31/6/00 resign on 1/8/00 and again re appointed on 30/8/2000 and hold office as on 31/6/01 is also not disqualifeid since he han not continued.

D who hold office on 31/6/00 and hold office till 31/6/01 with out any interruption is disqualified

actually there is no concept of tenure.

If yes it is for the nominee directors of PFI or banks or CG appointed directors how are appointed by the Govt. or PFI

An the provision of Sec 274(1)(g) does not apply to CG appointed director,

Nominee directoe of PFI.

THERE TENURE IS OF OFFICE OF MD OR WTD NOT DIRECTOR

P.no.21 of what hand book or main book....

Hi

The question would not arise. A managing director is not expected to be away from the State in which the meeting are held. Section 313 provides for the appointment of an alternate to a director and not to a managing director.

Regards