SIGMA LEGAL (advocate CS CA IP) 21 February 2018
Chandrani Mitra 18 February 2021
A director of a company is the caretaker of the company who conducts the affairs of the company on behalf of the actual owners of the company, i.e, the shareholders. Since the position of the directors are so important for contributing to the growth of the business, and hence the development of the economy. The Companies Act, 2013, prescribes, among other things, the criterion for the disqualification of lawyers. Section 164 of the Act states:
164. Disqualifications for appointment of director
(1) A person shall not be eligible for appointment as a director of a company, if —
(a) he is of unsound mind and stands so declared by a competent court;
(b) he is an undischarged insolvent;
(c) he has applied to be adjudicated as an insolvent and his application is pending;
(d) he has been convicted by a court of any offence, whether involving moral turpitude or otherwise, and sentenced in respect thereof to imprisonment for not less than six months and a period of five years has not elapsed from the date of expiry of the sentence:
Provided that if a person has been convicted of any offence and sentenced in respect thereof to imprisonment for a period of seven years or more, he shall not be eligible to be appointed as a director in any company;
(e) an order disqualifying him for appointment as a director has been passed by a court or Tribunal and the order is in force;
(f) he has not paid any calls in respect of any shares of the company held by him, whether alone or jointly with others, and six months have elapsed from the last day fixed for the payment of the call;
(g) he has been convicted of the offence dealing with related party transactions under section 188 at any time during the last preceding five years; or
(h) he has not complied with sub-section (3) of section 152.
(2) 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; or
(b) has failed to repay the deposits accepted by it or pay interest thereon or to redeem any debentures on the due date or pay interest due thereon or pay any dividend declared and such failure to pay or redeem continues for one year or more, 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.
The Act prescribes that a director disqualified under the provisions of Section 164(2) shall remain disqualified for a period of 5 years. It also states the Act shall disqualify directors with retrospective effect. In this context, the Hon’ble High Court of Delhi was moved and it was observed that the disqualification shall be made applicable to defaulters with effect from 1st April, 2014. The High Court of Gujarat, Madras, Karnataka were also of the same opinion.
Such disqualified directors may file a writ petition to the High Court of the state under whose jurisdiction the Company’s registered office is situated in order to make good the disqualification before the said period of 5 years.
In case all the directors of the company are disqualified under this section and the status of the company is at stake, in order to restore the ‘active’ status of the company, an application might be filed to the National Company Law Tribunal under whose jurisdiction the registered office of the company is situated.
Vanessa Lomis 23 February 2021
Hello Hello! I have found everything you have shared very interestingly. If you are looking for a website for cheap car rental, I recommend that you go to okcar.es. It is where I have found the best cheap car rental deals, I highly recommend it.
noyalparker 24 February 2021
Society will facilitate its own inhabitants by turning into the absolute first business place at your locale and carrying universal financial specialists and organizations to place cash into the radiant home activity. https://skymarketing.com.pk/lahore-smart-city/ Capital brilliant city Lahore can even reason a grouping of business and administration industry work risks thus prompting the money related prerequisite of Pakistan.