Director Disqualification - How to Become a Director Again
A disqualified director is one who is currently/temporarily not eligible legally for a fresh appointment as a director to a company, unless he/she gets free of the claims of disqualification. The new Indian Companies Act of 2013 contains various grounds or reasons which render a company director disqualified for the given period of time. This webpage offers very enlightening and securing information about director disqualifications as per Companies Act of 2013, removal of directors disqualification, the CODS-2018 of MCA, and how to become a director again after being temporarily disqualified.
The following are some of the most significant and noteworthy grounds for making a director disqualified in India:- The conditions and provisions given under the Section 164 of the Companies Act, 2013; including non-compliance to Section 152(3) of the Act.
- Failure in submitting Form DIR-8, as per the Rule 14 of the Companies (Appointment and Qualification of Directors) Rules, 2014
- Removal of the concerned company from the Register of Companies under the Section 248 of the Companies Act, 2013
- Non-compliance with the provisions given in Part I of the Schedule V to the Companies Act, 2013
- Non-compliance under the various relevant rules and regulations provided in or associated with the Companies Act of 2013, Income Tax Act of 1961, SEBI, RBI, FEMA, etc.
- And, any clauses of disqualification for appointment as a director, stipulated in the AOA of the employer company.
The Section 248 of the Companies Act of 2013 gives the ROC the power to strike off the companies from the Register of Companies, which have disqualified directors, as per anyone or more of the grounds given above. The Section 164(3) grants a time of thirty days to a disqualified director to take necessary action against the disqualifying order or conviction, from the date of passing order/conviction. Any director of such a struck-off company, then has the option to file an appeal/petition before the NCLT (National Company Law Tribunal) as per the provisions given in Section 252 of the Act, for restoration of his company name in the register of companies as well as for getting eligible again to be appointed as a director.
Here, it may also be just noted that, the Ministry of Corporate Affairs (MCA) disqualified over 3 Lakh directors in September 2017 declaring them as defaulting under the Section 164 (2) and other provisions and rules broadly associated with the Companies Act, 2013. Hence, to avert director disqualification companies act 2013, the directors of a company must file the financial statements and annual returns perfectly and timely, and also to prevent striking off the company from the Register of companies.
Condonation of Delay Scheme 2018, For Removal of Directors Disqualification
With an intention to give an opportunity to the non-compliant and defaulting companies of India, for rectifying their default, the MCA introduced and notified a welcome Scheme, namely, the "Condonation of Delay Scheme 2018" (CODS-2018) on December 29, 2017. This scheme is regarded as being a golden opportunity to remove the disqualification of director, through completing the filing of their overdue documents, which were due till June 30, 2017. MCA has devised this scheme after receiving numerous suggestions and requests from the defaulting companies and disqualified directors, who sought an opportunity to become law compliant and remove the disqualification imposed on them. This section gives very useful and beneficial information regarding this scheme related with the removal of disqualification of directors mca, to help the disqualified directors and defaulting companies located in entire India. As far as this scheme is concerned, the 'Defaulting Companies' are primarily and substantially all those companies which have not filed their financial statements or annual returns as required by the Section 164(2) of the Companies Act of 2013.
Cited as being a much-awaited relief to the disqualified directors for reviving their directorship and companies, this lenient and generous Scheme (CODS-2018) shall remain effective from January 01 to March 31, 2018. This scheme is applicable to all defaulting companies, other than the companies which have been removed from the Register of companies in accordance with the Section 248(5) of the Companies Act, 2013. Thus, the disqualified directors of the struck-off companies cannot avail this scheme, unless their companies are revived again (by the order of NCLT for revival), within the time-limit of this CODS-2018.
In case of the defaulting companies which are active (not struck off) with de-activated DINs of their disqualified directors at present, the DINs of them shall be temporarily activated during the validity of this scheme, enabling them to file their overdue documents together with the prescribed statutory filing fees and additional filing fees [applicable as per the Section 403 of the Companies Act of 2013, and the Companies (Registration Offices and Fee) Rules of 2014]. The defaulting companies will then seek condonation of delay by filing the e-Form CODS 2018 with the portal MCA21. The fee for filing this e-Form CODS 2018 is Rs. 30,000/- (Rupees Thirty Thousand Only). The disqualified directors of active defaulting companies, who did not file their respective overdue documents and the e-Form CODS 2018 within the time-period of this scheme, would be liable to get their DINs de-activated again, after the expiry of the scheme.
Active Defaulting Companies or their Disqualified Directors, may avail our well-informed and efficient services under this scheme CODS 2018, to remove their disqualifications and make their companies law compliant and secure, just through contacting at: +91-81303-00046, 88001-00284; or sending their relevant queries or requests to: companies@GlobalJurix.com. The Struck Off Companies may also avail our expert legal services for revival during this Scheme of MCA.