A Director can be disqualified for various reasons including non filing of annual returns , misrepresentations, cheating/fraud or 'unfit' conduct. Failing to adhere your duties mentioned under the Companies Act,2013.
Disqualification means the act of stopping from taking part in some activity because of unwanted behaviour or breaking the regulations or not following the order. Here director disqualification under the Companies Act 2013, means disqualification to act as a director in all meetings and activities.
The Company is a separate legal entity and it cant act on its own. So a Private Limited Company needs Board of Directors to take decisions and do activities. He is an agent for the company and has to act on behalf of the company.
According to the Section 164 of the Companies Act,2013 a person is not eligible for appointment as a director , if
He is a representative of the company and enjoys highest position of the company. Hence he must have basic qualifications like age morethan 18 years, sound mind, not an undischarged insolvent or having pending application, not convicted. Other qualifications company may prescribe by way of AOA like Qualification Shares.
If it is a voluntary liquidation, you can be a director. Generally , Insolvency Professionals will be your company' Directors during liquidation.
You Cant. If a company cannot appoint Disqualified director as CEO.
Yes. You can. Unless he is disqualified for unfair transactions like misuse of related party transactions / expelled by the order of Court/Tribunal/SEBI, he cant be a share holder.
Disqualification means the act of stopping from taking part. This order issued by the ROC/Court/Tribunal is called Disqualification Order.
Yes. As there is no special to control , the disqualified director can be a partner or sole Proprietor. But he cant take indirect participation in any company for the period of his disqulification.
No. You cant act as a director in any other company.
No. He cannot participate any board meeting for the period.
No. If he is ineligible to appoint as a company secretary, he cant be appointed as a company secretary.
The disqualified directors have some relief against disqualification. The disqualified director has to wait for the disqualification period of 5 years. If he/she needs remedy / relief, they have to approach Court/NCLT.
Removal of Director Disqualification is a time consuming job. We have to approach the Court/NCLT for removal. We can approach High Court and apply for Writ. The court will order for removal of disqualification of a director, if it accepts the director's view.
After Filing annual returns and financial statements, we can approach the Court to give directors to remove the disqualifications.
There is no need for board resolution for removing disqualification . Sometimes, you may need board resolution for reappointment.
Draft Copy Writ Petition for removal of disqualification of directors will send to you by our Smart CA Experts before filing. You have to confirm and sign the petition.
After receiving disqualification order from the court/tribunal, the disqualified directors can reach ROC to reactivate their DIN Number and change the DIN Status.
Now, ROC is online. So we can check the latest news of directors disqualification in mca.gov.in.
There is a government portal to check the status of a director. It will give the DIN Status.
MCA / ROC is regularly publishing disqualified director list in their portal. mca.gov.in. Please visit and download directors list.
We have explained various questions in the above paragraphs. Removing disqualification of a director is a not a easy job. But we can handle and remove by way of court order unless he is disqualified due to court conviction. At Smart CA, we are here to support you. We have senior advocates who handles this in and out.
