Ltd DISQUALIFICATION FOR APPOINTMENT OF DIRECTORS
INTRODUCTION OF REVISED AND NEW E-FORMS IN RESPECT OF DIRECTORS AS PER MCA NOTIFICATION DATED
20.01.2023:
MCA notification dated 20.01.2023 has amended the provisions of the Companies (Appointment and Qualifications of Director) Rules, 2014 as follows:
Every director shall inform the Company about the disqualifications under 164(1) and (2)* as discussed below
Form DIR-8 before appointment or Reappointment
When the company receives the information in Form DIR-8 Within 30 of receipt file Form DIR-9 with the Registrar
Upon receipt of the Form DIR-9 Registrar shall register the documents and place for the public inspection
Any application for removal of disqualification of directors Form DIR-10 and filed before Regional Director
Note: Following forms are also amended and substituted other than the forms discussed above in respect of Directors.
Form DIR-3: Application for allotment of DIN;
Form DIR-3C: Intimate information of directors, managing directors, manager, and secretary by an Indian company;
Form DIR-5: Application for surrender of Director Identification Number;
Form DIR-6: Intimation of change in particulars of Director/ Designated Partner to be given to the Central Government,
Form DIR-11: Notice of the resignation of a director to the Registrar and;
Form DIR-12: Appointment of directors and the key managerial personnel and the changes among them
*Directors disqualified u/s 164 (1) and (2) of the Companies Act 2013.
1. Director Disqualified under section 164(1): A person shall not be eligible for appointment as director of the Company if he :
• Unsound mind as declared by the Competent court.
• Undischarged Insolvent
• applied to be adjudicated as insolvent and his application is pending.
• Convicted by a Court of any offense, whether involving moral turpitude or not, imprisonment for not less than 6 months and 5 years shall not elapse from the date of expiry of the sentence.
• order disqualifying him for appointment as a director has been passed by a court or Tribunal and the order is in force.
• Not paid any calls in respect of any shares of the company held by him, whether alone or jointly with others, and 6 months have elapsed from the last day fixed for the payment of the call.
Ltd DISQUALIFICATION FOR APPOINTMENT OF DIRECTORS
• convicted of the offense dealing with related party transactions under section 188 at any time during the last preceding five years
• Not complied with sub-section (3) of section 152.
2. Director Disqualified under section 164(2): No person who is or has been a director of the Company which has:
• Not filed financial statements or annual returns for any continuous period of three financial years; or
• Failed to repay the deposits accepted by it, pay interest thereon or redeem any debentures on the due date or pay the interest due thereon or pay any dividend declared, and such failure to pay or redeem continues for one year or more,
Shall not be eligible to be re-appointed as a Director of that Company or any other Company for a period of 5 Years.
CONCLUSION
EFFECT OF AMENDMENTS:
1. Earlier Directors were required to inform the concerned companies about the disqualification under 164(2) in Form DIR-8 but after the amendment, the words “sub-section (1) or” inserted, and Now DIR-8 must be filed for Section 164 (1) and (2).
2. Earlier From DIR-9 was used only when Company failed to file a financial statement or annual return or failed to repay any deposit, interest, or dividend, or failed to redeem its debentures, as specified in section 164(2) and now after amendments the Companies are required to file this form whenever form DIR-8 is received regarding disqualification of a director
3. Earlier there was Form DIR-10 was filed for the application for removal of disqualification of the director but now after amendments “filed before Regional Director” is inserted
Disclaimer: This article provides general information existing at the time of preparation and we take no responsibility to update it with the subsequent changes in the law. The article is intended as a news update and Affluence Advisory neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this article. It is recommended that professional advice be taken based on specific facts and circumstances. This article does not substitute the need to refer to the original pronouncement
