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Section 164(2) of new cos act

Companies Act 2013 2315 views 4 replies

If a private ltd company has not filed its financials for more than three years, and the directors of such company are directors in other private ltd. company also. Whether the disqualification of directors attached to non-filing of financials will apply to such other company also? does that mean that the director shall vacate office form all the companies wherein he is a director?

Replies (4)

According to clause a of sub section 2 of section 164, "No person who is or has been a director of a company which has not filed financial statements or annual returns for any continuous period of three financial years shall be eligible to be re-appointed as a director of that company or appointed in other company for a period of five years from the date on which the said company fails to do so."

 

According to clause a of sub section 1 of section 167, "The office of a director shall become vacant in case he incurs any of the disqualifications specified in section 164."

 

Thus on combined reading of clause a of sub section 2 of section 164 read with clause a of sub section 1 of section 167 we can construe that if a director has made a non - compliance u/s 164 (2) (a); his office shall stand vaccated u/s 167 (1) (a).

 

Hope this would solve your query.

 

Thanks.

Section 274(1)(g) is replaced by section 164 under the new companies act which is applicable not only to limited co bt also to pvt companies as well.

Do we need to take declaration from director under new provisions also which earlier was taken under section 274(1)(g).

Erstwhile 274 (1) (g) is applicable to private limited company also, so be alert

If company has not filed their returns for last three years , director of such companies may come under 

disqualification provisions and also will be disqualified for 5 years in existing company,

All decalaration/Disclosure proceedures are at par and applicable to all companies .

Can u plz share the draft format of the declaration. Thanks in advance


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