17 February 2011
Suppose if a pvt. ltd. company refuses to pay its creditor a genuine debt, due to its creditor, can provision of S. 274 be invoked thereby disqualifying all the directors.
17 February 2011
Sec 274(1)(a) to (f) does not apply to your directors. Sec 274(1)(g) is applicable only to the Public Ltd Company. So, the directors are not disqualified in your case. But check the articles of the Company, whether in the articles there are some additional grounds mentioned.
17 February 2011
Section 274(1)(g) talks of disqualifications of a director of a public company which has failed to pay deposits or interest thereon on due date or failed to redeem its debentures on due date or pay dividend, for appointment as a director of any other public company.
So these disqualification provisions are not applicable in case of a failure on the part of a private company.
Again the case referred to you is a failure to pay a debt which is not at all covered by the section.
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