13 April 2009
I once again want to raise the question that whether sect 274 1 g applicable only to the director of public ltd. co or pvt ltd. also??????? As I am not satisfied with prev. soln'.
13 April 2009
it does not apply to directors of pvt company but if a public co. director is disqualifed than he can not be appointed in public as well as in pvt. co.
13 April 2009
(g) such person is already a director of a public company which –
(A) has not filed the annual accounts and annual returns for any continuous three financial years commencing on and after the first day of April, 1999; or (B) has failed to repay its deposit or interest thereon on due date or redeem its debentures on due date or pay dividend and such failure continues for one year or more:
Provided that such person shall not be eligible to be appointed as a director of any public company for a period of five years from the date on which such public company in which he is a director failed to file annual accounts and annual returns under sub-clause (A) or has failed to repay its deposit or interest or redeem its debentures on due date or pay dividend referred to in clause (B).”
13 April 2009
3. If a person was a director of a public company, which has committed default under section 274 (1) (g) and ceased to be director of that public company would not be disqualified from being appointed as a director of a private company. The reason behind this contention is that the provisions of section 274 (1) (g) are applicable to the appointment of such director in another public company
13 April 2009
DISQUALIFICATION APPLICABLE FOR APPOINTMENT OF A DIRECTOR OF A PRIVATE COMPANY
Disqualification under section 274 (1) (g) is applicable for appointment of directors both in public as well as private companies. Thus, a person who has attracted disqualification, will not be capable of being appointed as a director even of a private company.
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