Sec 164(2)(a) under companies act

Dear Sir,

A director who is disquailified u/s 164(2)(a) from a pvt ltd company for non-filing of returns, can he continue to be a director in other active & compliant pvt ltd company. Please reply. Thanks

Manoj Sanghavi



Dear Mr. Sanghavi,

The plain reading of the concerned provision, Section 164(2) of the Companies Act, 2013 is:

No person who is or has been a director of a company which—

 (a) 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.


Therefore, if the company has not filed the annual returns for a continuous period of 3 financial years, the directors shall become ineligible to get appointed in any other company during a period of 5 years from the date on which that company fails to comply with the statutory compliance.

So, to answer your query he shall not be eligible to become a director in another Indian private limited company for a period of 5 years from the date of violation of the above provision. The law is applicable only in the case of a Private Limited Company.

Feel free to ask for any clarifications.


Best regards,

Kabir Hazarika

Advocate, Delhi High Court




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