Startup
Start Your Business
Private Limited Registration
Public Company Registration
OPC Pvt Ltd Registration
LLP Firm Registration
Section 8 Company Registration
Nidhi Company Registration
Insurance Company Registration
NBFC Company Registration
Producer Company Registration
Foreign Subsidiary Registration
Foreign Branch Office
Foreign Liaison Office
Foreign Project Office
Overseas Company Registration
Proprietorship Firm Registration
Partnership Firm Registration
Grow Your Business
GST Registration
MSME Registration(UDYAM)
Shop & Establishment Registration
Startup India Registration
ESI/PF Registration
IEC Code (Import Export)
Startup Consultation
Appoint Virtual CFO
Angel Funding/ VCs
Virtual Office Service
Due Diligence of Company
Business Development
Protect Your Business
Trademark Registration
Trademark Objection
Trademark Hearing
Trademark Opposition
Trademark Infringement
Trademark Renewal
Trademark Assignment
Trademark Withdrawal
Trademark Monitoring
Logo Design Service
Copyright Registration
Patent Registration
Exit Your Business
Close Company
Fast Track
Close LLP
Close Firm
GST Cancellation
Compliances
Change Services
Change Company Name
Change LLP Name
Change Company Object
Change LLP Object
Increase Authorised Capital
Increase Paid-up Capital
Increase LLP Capital
Transfer of Shares
Alteration in MoA & AoA
Resignation of Auditor
Appointment of Director
Resignation of Director
Change in Designation of Director
Shifting Registered Office of Company
Shifting Registered Office of LLP
Dormant Status of Company
Mandatory Compliances
Appoinment of Auditor
Annual Filings of Company
Annual Filings of LLP
Annual DIN/DPIN KYC
Annual Return of Deposits
Half Yearly MSME Return
Statutory Registers & Minutes
XBRL Filing of Companies
eStamping of Share Certificates
Dematerialisation of Shares
RBI FEMA Compliance
GST Returns Filing
ESI-EPF Returns Filing
TDS Returns Filing
Change in Structure
Proprietorship to OPC
OPC to Private Limited
Private Limited to OPC
LLP to Private Limited
Private Limited to LLP
Partnership Firm to LLP
Private Limited to Public Company
Public Company to Private Limited
Trust/Society to Section 8 Company
Existing Company to Section 8
Existing Section 8 to Company
Services
Accounting & Book Keeping
GST Compliance
Valuation Services
Corporate Litigation
Company Law Advisory
Services For Banks
Drafting & Vetting Services
Business Setup Advisory
Startups Funding
Business Loans
Get in Touch
Govt Liaisoning
Retainership Services
NBFC
NBFC Company Registration
NBFC Micro-Finance Registration
NBFC P2P Lending Registration
NBFC Core Investment Company
NBFC ROC Compliance
NBFC RBI Compliance
NBFC License Restoration
NBFC Business Plan
NBFC Acquisition
NBFC Consultancy
NBFC Compliance Calendar
NBFC Independent Director
ISO
ISO 9001:2015
Most Demanded
ISO 14001:2015
ISO 13485:2016
OHSAS 18001:2007
HACCP Certification
CE Marking
GMP Certification
CMMI Level 3 Certification
ISO 22000:2005
ISO 27001:2013
FSSAI
FSSAI Registration
FSSAI State License
FSSAI Central License
FSSAI Registration Renewal
FSSAI License Renewal
FSSAI Returns Filing
FSSAI Compliances
FSSAI Consultancy
ITR
Salaried Person
TDS Refund
Firms/LLPs
Companies
NGOs
Income Tax Notice
Income Tax Planning
Income Tax Litigation
Income Tax Computation
Charity
Section 8 Company
Recommended
Trust Registration
Society Registration
80G & 12A Registration
FCRA Registration
NITI Ayog Registration
CSR-1 Registration
CSR 2 Report
CSR Services
NGO Consultancy
NGO Handholding
Govt Grants Support
Partnership
Angel Investors
Venture Capitalists
Co-Working Spaces
Banks and NBFCs
Incubation Centres
Government Wings
Institutional Bodies
Software Companies
CA/CS/CMA/Lawyers
Press & Media Houses
Overseas Ventures
Other Startup Enablers
Contact Us
Home
SOS Room
Disqualification of Director and Deactivation of DIN: Laws, Effect, Procedure and Remedy
Disqualification of Director and Deactivation of DIN: Laws, Effect, Procedure and Remedy
Volume
1
Rate
1
Pitch
1
Disqualification of Director and Deactivation of DIN: Laws, Effect, Procedure and Remedy . DISQUALIFICATION OF DIRECTOR Introduction Disqualification of Directors refers to Conditions because of which a person becomes ineligible to become a Director / appointed as a director of the Company within the time period specified; Section 164 of Companies Act, 2013 provides the circumstances and situations under which a person shall not be eligible for appointment as a Director of the Company, it also provides for the situation in which a Director shall not be eligible to be re-appointed as director of that Company or appointed in any other Company for period of 5 years; A Private Company may by its Articles provide for other disqualifications in addition to those specified in Section 164 of the Companies Act 2013.Governing Laws Section 164 of Companies Act 2013 read with Companies (Appointment and Qualification of Directors) Rules, 2014Analysis of Provision'sSection 164 lays down the grounds of disqualification for appointment of Director:Sub-Section 1 of Section 164 of Companies Act, 2013 A person shall be ineligible to be appointed as a director of the company, if he falls under any one of the below mentioned grounds: Sub-Section 2 of Section 164 of Companies Act, 2013(a) A person who is or has been a director of a Company which has not filed financial statements or annual returns for a continuous period of three financial years (b) If the Company fails to: - pay interest on deposits or repay the deposits; redeem any debentures on due date or pay interest on it; to pay declared dividend and continuing so for one year or more. Consequences of Disqualification under Section 164 (2) of Companies Act, 2013 The person shall be ineligible to be reappointed as a director of that Company or appointed in other Company for a period of 5 years from the date on which the said Company fails to do so; Such Director shall be required to vacate office of a Director in all the Companies other than the Company which is in default as per provisions of Section 167 of Companies Act, 2013; If a person acts as a director even when he is aware that the office of director held by him has become vacant on account of disqualification, he shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees. Orders of High Court on Directors Disqualification: Ministry of Corporate Affairs had issued Notices for Strike off of Companies which also resulted in Disqualification of Directors. Many of the Directors availed the remedy of filing Writ Petition before the Hon’ble High Court for removal of Disqualification of Directors and Activation of DIN. Below are some of the judgements of High Court with respect to Disqualification of Directors: Delhi High Court: - # Sandeep Ahuja Vs Union of India & Ors. Registrar of Companies was directed by Hon’ble High Court for removal of disqualification of Director for Active Companies & reactivate his DINs/DSCs. # Anjali Bhargava And Anr Vs Union of India And Anr. Order of Director’s disqualification was set aside by Hon’ble High Court and ordered for reactivation of Director Identification Number (DIN) and Digital Signature Certificate (DSC). Compliance Checklist & Procedural Aspects w.r.t Removal of Disqualification of Director of the Company The following remedies are available for Removal of Disqualification of Director of the Company: A) If the Disqualified Director is associated with the Struck – Off Company and the Director wishes the Revive the Company and activate the DIN: Application to National Company Law Tribunal (NCLT)Steps Involved: Drafting NCLT Petition for Revival of Company and removal of disqualification of Director Filing Petition with NCLT along with requisite documents Fixing of hearing date by NCLT Order from Tribunal Compliance with Directions issued by Tribunal Intimation and filing of Order with ROC within 30 days from date of Receipt of Order Publication of Order in Official Gazette by ROC Restoration of name of Company & Activation of DIN Filing of pending Returns with ROC. Time Limit: - Any person aggrieved by an order of the Registrar, notifying a company as dissolved under section 248, may file an appeal to the Tribunal within a period of three years from the date of the order of the Registrar.; For Company or any Member or Creditor or Workman – Before expiry of 20 years from the date of Publication of Notice relating to Strike-off of the Company- for restoration of name of the Company; List of Documents required to be filed along with Petition: - Memorandum and Articles of Association; Certificate of Incorporation; Notice for strike off from ROC; Auditor’s Report, Financial Statements, Notes to Accounts along with Notice & Board’s Report w.r.t Financials Years from which the Annual Filing of the Company is pending; Board Meeting and General Meeting Minutes; ITR Acknowledgements; GST Certificate; Bank Statements of all Bank accounts; ESIC and EPFO payment receipts and Registration certificate/Employees Salary; Any Other Statutory registrations such as MSME, Shop Act, Factory License etc; Such other documents depending upon the facts and circumstances of each case. B) If the Disqualified Director is associated with Struck – Off Company and the Directors does not wish to revive the Company but only wishes to activate the DIN: Filing of Writ Petition before Hon’ble High CourtSteps Involved: - - Preparation of Writ petition - Filing of Writ petition with High Court - Receipt of High Court Order for Activation of DIN - Filing High Court Order with Registrar of Companies - Activation of DIN by Registrar of Companies C) Provisions as per Companies Act, 2013: Every Director shall inform to the Company about his disqualification under section 164 (2), if any, in Form DIR-8, before appointment or re-appointment; On receipt of the same, the Company has to take on record the same in the Board Meeting and file E-Form DIR-12 to Registrar of Companies for Vacation of Office as a Director of the Company, if applicable; Whenever a Company fails to file financial statements/ annual returns/ fails to repay any deposit, interest, dividend/ fails to redeem its debentures as specified u/s 164 (2), the Company shall immediately file Form DIR-9 to ROC furnishing the furnishing therein the names and addresses of all the directors of the Company during relevant financial years; The Registrar on receipt of Form DIR-9 shall immediately register the document and place the same for public inspection. Application for removal of disqualification to be made in Form DIR-10 The procedure for filing Form DIR-10 with respect to removal of disqualification is not specified anywhere. Only format is specified on MCA Portal. DEACTIVATION OF DIN The DIN of the Disqualified Director becomes deactivated and therefore his Digital Signature cannot be affixed for filing any E-Forms on MCA Portal. HOW CAN COMPLIANCE CALENDAR LLP HELP? Once the Director becomes disqualified under provisions of Companies Act 2013, he becomes ineligible to act as Director of the Company which affects his professional career and future growth. Also, the business of the Company in which he is a director is affected to certain extent. Further DIN of the disqualified director becomes deactivated. Directors Disqualification can be removed and DIN can be reactivated through the above-mentioned remedies by seeking proper professional guidance. Compliance Calendar LLP has a team of skilled legal professionals who can provide you proper assistance and guidance with respect to Removing Disqualification of Directors and Activate DIN. If you have any queries, email us at info@ccoffice.in or WhatsApp/Call at 9988424211
Share this article:
Search more articles:
You may also like
DIN KYC: Procedure, Due Date, DIN KYC Status and Consequences/ Penalty of Non-Filing
Form 30B of Income Tax Department: All You Need to Learn
RBI Increases Repo Rate - Here’s how it impacts you and your business
CBIC: Reduction of E-invoice Limit to Rs. 5 Crores from 10 Crores starting 01 Aug, 2023
Start Your Business
Private Limited Registration
Public Company Registration
OPC Pvt Ltd Registration
LLP Firm Registration
Section 8 Company Registration
Nidhi Company Registration
Insurance Company Registration
NBFC Company Registration
Producer Company Registration
Foreign Subsidiary Registration
Foreign Branch Office
Foreign Liaison Office
Foreign Project Office
Overseas Company Registration
Proprietorship Firm Registration
Partnership Firm Registration
Grow Your Business
GST Registration
MSME Registration(UDYAM)
Shop & Establishment Registration
Startup India Registration
ESI/PF Registration
IEC Code (Import Export)
Startup Consultation
Appoint Virtual CFO
Angel Funding/ VCs
Virtual Office Service
Due Diligence of Company
Business Development
Protect Your Business
Trademark Registration
Trademark Objection
Trademark Hearing
Trademark Opposition
Trademark Infringement
Trademark Renewal
Trademark Assignment
Trademark Withdrawal
Trademark Monitoring
Logo Design Service
Copyright Registration
Patent Registration
Exit Your Business
Close Company
Fast Track
Close LLP
Close Firm
GST Cancellation
Change Services
Change Company Name
Change LLP Name
Change Company Object
Change LLP Object
Increase Authorised Capital
Increase Paid-up Capital
Increase LLP Capital
Transfer of Shares
Alteration in MoA & AoA
Resignation of Auditor
Appointment of Director
Resignation of Director
Change in Designation of Director
Shifting Registered Office of Company
Shifting Registered Office of LLP
Dormant Status of Company
Mandatory Compliances
Appoinment of Auditor
Annual Filings of Company
Annual Filings of LLP
Annual DIN/DPIN KYC
Annual Return of Deposits
Half Yearly MSME Return
Statutory Registers & Minutes
XBRL Filing of Companies
eStamping of Share Certificates
Dematerialisation of Shares
RBI FEMA Compliance
GST Returns Filing
ESI-EPF Returns Filing
TDS Returns Filing
Change in Structure
Proprietorship to OPC
OPC to Private Limited
Private Limited to OPC
LLP to Private Limited
Private Limited to LLP
Partnership Firm to LLP
Private Limited to Public Company
Public Company to Private Limited
Trust/Society to Section 8 Company
Existing Company to Section 8
Existing Section 8 to Company
Services
Accounting & Book Keeping
GST Compliance
Valuation Services
Corporate Litigation
Company Law Advisory
Services For Banks
Drafting & Vetting Services
Startups Funding
Business Loans
Get in Touch
NBFC
NBFC Company Registration
NBFC Micro-Finance Registration
NBFC P2P Lending Registration
NBFC Core Investment Company
NBFC ROC Compliance
NBFC RBI Compliance
NBFC License Restoration
NBFC Business Plan
NBFC Acquisition
NBFC Consultancy
NBFC Compliance Calendar
NBFC Independent Director
ISO
ISO 9001:2015
ISO 14001:2015
ISO 13485:2016
OHSAS 18001:2007
HACCP Certification
CE Marking
GMP Certification
CMMI Level 3 Certification
ISO 22000:2005
ISO 27001:2013
FSSAI
FSSAI Registration
FSSAI State License
FSSAI Central License
FSSAI Registration Renewal
FSSAI License Renewal
FSSAI Returns Filing
FSSAI Compliances
FSSAI Consultancy
ITR
Salaried Person
Firms/LLPs
Companies
NGOs
Income Tax Notice
Income Tax Planning
Income Tax Litigation
Charity
Section 8 Company
Trust Registration
Society Registration
80G & 12A Registration
FCRA Registration
NITI Ayog Registration
CSR-1 Registration
CSR 2 Report
CSR Services
NGO Consultancy
NGO Handholding
Govt Grants Support
Partnership
Angel Investors
Venture Capitalists
Co-Working Spaces
Banks and NBFCs
Incubation Centres
Government Wings
Institutional Bodies
Software Companies
CA/CS/CMA/Lawyers
Press & Media Houses
Overseas Ventures
Other Startup Enablers
Contact Us