{"id":1508,"date":"2021-04-10T05:23:21","date_gmt":"2021-04-10T05:23:21","guid":{"rendered":"https:\/\/www.akgvg.com\/blog\/?p=1508"},"modified":"2021-04-10T05:29:27","modified_gmt":"2021-04-10T05:29:27","slug":"disqualifications-for-appointment-of-director","status":"publish","type":"post","link":"https:\/\/www.akgvg.com\/blog\/disqualifications-for-appointment-of-director\/","title":{"rendered":"Disqualifications For Appointment Of Director"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

Disqualification of Director: Section 164 contains the conditions in which a director can be disqualified as a director. Determining the condition by which a person cannot be appointed as a director or restricting him from becoming a director of the company covered under Disqualification of a director.<\/p>\n\n\n\n

Reason of disqualification can be two<\/p>\n\n\n\n

\"This<\/figure>\n\n\n\n

As per Section 164(1) a person shall not be eligible for appointment as a director, if-<\/p>\n\n\n\n

(<\/strong>a) He is of unsound mind and has been declared by the competent court.<\/p>\n\n\n\n

(b) He is an undischarged insolvent.<\/p>\n\n\n\n

(c) He applied and his application is pending for adjudication as an insolvent.<\/p>\n\n\n\n

(d) He has been convicted in any offence involving moral turpitude or otherwise and Sentenced to imprisonment for not less than 6 months and a period of 5yearshas not elapsed from the date of expiry of sentence as specified.<\/p>\n\n\n\n

Provided that if a person has been convicted of any offence and sentenced to imprisonment for more than7 years then he shall not be eligible to be appointed as a director in any of the company.<\/p>\n\n\n\n

(e) Court or tribunal passed an order disqualifying him for appointment as a director and the order is in force.<\/p>\n\n\n\n

(f) Not paid any calls amount made by the company for shares held by him, whether alone or jointly with others, and 6 months have elapsed from the date fixed for the payment of call amount.<\/p>\n\n\n\n

(g) He has been convicted for offence of related party transactions (RPT) under Section 188 at any time during the last preceding 5 year.<\/p>\n\n\n\n

(h) He has not complied with section 152(3) of Companies Act, 2013. (i) If he is a director in more than 20 companies including any Alternative Directorship.<\/p>\n\n\n\n

Section 164(2) also provides that no person who is or has director of a company which \u2013<\/u><\/strong><\/p>\n\n\n\n

(a) Has not filed the financial statements or the annual returns forany continuous period of 3 financial years; or<\/p>\n\n\n\n

(b) Has failed to pay again the security\/deposits received by it or pay interest thereon or failed to redeem any debentures on the last date or pay interests thereon and these failures continued for 1 year or more, shall be suitable to be appointed or re-appointed in other company as a director of that company for 5 years from the date on which said company fails in order to do that.<\/p>\n\n\n\n

This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates<\/a> does not intend to advertise its services through this.<\/strong><\/p>\n\n\n\n

Posted by: CA Neetu Saini<\/p>\n\n\n\n

AKGVG & Associates<\/p>\n","protected":false},"excerpt":{"rendered":"

Disqualification of Director: Section 164 contains the conditions in which a director can be disqualified as a director. Determining the condition by which a person cannot be appointed as a director or restricting him from becoming a director of the company covered under Disqualification of a director. Reason of disqualification can be two As per…<\/p>\n","protected":false},"author":1,"featured_media":1509,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120],"tags":[323,343,463,479,469,473,277],"class_list":["post-1508","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-secretarial-services","tag-akgvg","tag-akgvg-associates","tag-cafirm","tag-secretarial","tag-secretarial-audit","tag-secretarial-service","tag-secretarial-support"],"_links":{"self":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/1508","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/comments?post=1508"}],"version-history":[{"count":2,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/1508\/revisions"}],"predecessor-version":[{"id":1511,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/1508\/revisions\/1511"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/media\/1509"}],"wp:attachment":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/media?parent=1508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/categories?post=1508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/tags?post=1508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}