Remedy for director disqualification

Companies Act 2013 286 views 1 replies

Help me regarding :-

There is an existing company of which 2 Directors have been disqualified. So, what is remedy to become qualified under Companies Act, 2013. To the best of my knowledge, we can go to NCLT. So, what is the procedure required to follow ?

Replies (1)
Eliminate by compounding
it is not an offence and no penalty / fine is prescribed then it can't be compound under Section 441. Hence, disqualification can't be removed by compounding of offence.

Eliminate by 'NCLT':
As per the NCLT Rules nowhere under the rules power / process is given to NCLT for removal of disqualification of Directors u/s 164(2). Hence until unless there is any amendment in the provisiosn of Companies Act, 2013 or any clarification issued by the Central Government Hon'ble NCLT don't have any power to remove the disqualification of director.

Power of Central Government:
As per study of Section 164(2) and Rule 14 simultaneously 'one can opine that disqualification of Directors can be eliminating by filing of application in DIR-10 with Central Government. However, such application in DIR-10 can be made only at the end of the tenure of five years post his disqualification.'

Once a director is disqualified u/s 164(2) he shall continue disqualified for FIVE financial years.
There seems to be no remedy available as per the Companies Act, 2013, a Writ Petition can be made by the aggrieved director under Article 226 of the Constitution of India in the absence of any alternate remedy available.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details