Director Disqualification and Condonation

Director disqualification has grown quite a lot during recent times. From failed startups to ignoring to file the compliances, the  reasons for the same given by Ministry of Corporate Affairs are many. if you have prevent them, you can prevent yourself from getting disqualified.

Following are the grounds for director disqualification:

• If the director has failed to file the annual returns and the financial statements for 3 years in a row
• If the director has not repaid the deposits that they have taken or has not paid any interest or has not paid any   debentures. When this happens for 1 whole year, then also the director is closed.
• The director is an un-discharged insolvent
• The Insolvency application filed by the director is still pending
• The director is involved in an offense that he or she are convicted of and that conviction has let to imprisonment for a   period of not less than six months.
• A court or tribunal has passed order that disqualifies the director
• The director holds shares of a company that has not made any payment of any such call in six months.  

When a director is disqualified, it does not affect the company due to the company’s perpetual nature. In this case, a temporary new director is hired for the time being. The other personnel of the company take this course of action after filing all of the overdue returns. Once they have fulfilled their returns up to the recent date, only then can they hire a new director.

However, what you need here is reinstatement as a director. This is a long and arduous process that you would need assistant to go through. Therefore, vidhipatra legal solution, through its experience and experts is here to assist you so that you can regain your position as the director of the company. 

Eligibility Criteria for Removal of Director Disqualification

To remove director disqualification, the only eligibility criteria is for your director to not have any hidden reasons that can stop him or her from being requalified as your company’s director.