In our former Articles, we have talked, How to remove the disqualification of the Director and how auditor reports a disqualification of a director in the Audit Report.
In this editorial, the author shall discuss the Quick bites on ‘Disqualification of Director’.
As we have received numerous questions from our professional colleagues through WhatsApp groups “Gyan Gurukul”, inside this editorial we have attempted to clarify all those questions relating to the same.
|1.||How do you know a director is disqualified? Or What is the meaning of disqualified by ROC u/s 164 2?
Section 164(2) provide conditions for disqualification of director.
|2.||Can a disqualified director of Company file an affidavit in court on behalf of Company?
if a person disqualified in any Company due to section 167(1) such person shall be considered as Ceased in all other Companies wherever he was appointed as Director. Therefore, he is not allowed to sign any document on behalf of Company
|3.||What if all the directors of Company disqualified?
If all the Directors of Company disqualified, in such case promoters of Company shall call an Extra Ordinary General Meeting and appoint new directors in such EGM.
|4.||Can a disqualified director sign a Financial Statement?
Once a director is disqualified, he shall be ceased to become director of company from the date of disqualification. Therefore, he is not allowed to sign financial statement of Company.
|5.||How do restore din of Disqualified Director? /
How do you get rid of disqualification US 164 (2)?
To read detailed answer of this question, please visit: http://csdiveshgoyal.in/how-to-remove-disqualification-of-director/
|6.||Can a disqualified director be a director in another company?
Once disqualified, a person is not eligible for being appointed as Director of that company or any other company. This restriction is imposed for a period of five years.
|7.||Can a disqualified director be a shareholder in India? Or Whether disqualified director can act as shareholder in Companies?
Yes, disqualified director can freely continue as Shareholders in all the Companies irrespective they are disqualified u/s 164 and vacant office u/s 167. Disqualification impact only directorships of the Director.
|8.||Can a disqualified director be a partner in LLP?
Disqualification of such person shall be limited on Companies Act not on the other Acts. Therefore, he is eligible to get appointment as designated partner.
|9.||Does the disqualifications of section 164 167 of Companies Act 2013 apply on whole time director or manager or managing director as well?
Yes, disqualification is relating to director. It covers all type of Directors like: (MD, WTD, Additional Director, Alternate Director etc)
|10.||Whether the disqualified directors of the disqualified company can be a part of suit for removal of struck off company?
Disqualified director ceased from the company from position of Director. Disqualified Director can’t be part of suit of removal of struck off Company.
|11.||Can a disqualified director Grant loan to his private limited company?
Private Company can’t accept loan from outsiders except (Directors, Relative of Directors and shareholders). Once a person disqualified the ceased from position of director. Therefore, Private company can’t accept loan from disqualified director.