03 February 2018
As per 164(1) of the Companies Act 2013, The responsibility of auditor is to file Form DIR 8 The relevant extract of the provision under the aforesaid sections are as follows: Section 164(1) Provides that a person shall not be eligible for appointment as a director of a company, if – (a) He is of unsound mind and stands so declared by a competent court; (b) He is an undischarged insolvent; (c) He has applied to be adjudicated as an insolvent and his application is pending; (d) He has been convicted by a court of any offence, whether involving moral turpitude or otherwise, and sentenced in respect thereof to imprisonment for not less than six months and a period of five years has not elapsed from the date of expiry of the sentence. Provided that if a person has been convicted of any offence and sentenced in respect thereof to imprisonment for a period of seven years or more, he shall not be eligible to be appointed as a director in any company (e) An order disqualifying him for appointment as a director has been passed by a court or Tribunal and the order is in force; 204 PP-ACL&P (f) He has not paid any calls in respect of any shares of the company held by him, whether alone or jointly with others, and six months have elapsed from the last day fixed for the payment of the call; (g) He has been convicted of the offence dealing with related party transactions under section 188 at any time during the last preceding five years; or (h) He has not complied with sub-section (3) of section 152. Section 164(2) also provides that no person who is or has been a director of a company which – (a) Has not filed financial statements or annual returns for any continuous period of three financial years; or (b) Has failed to repay the deposits accepted by it or pay interest thereon or to redeem any debentures on the due date or pay interest due thereon or pay any dividend declared and such failure to pay or redeem continues for one year or more, shall be eligible to be re-appointed as a director of that company or appointed in other company for a period of five years from the date on which the said company fails to do so. Every director shall inform to the company concerned about his disqualification under sub-section (2) of section 164, if any, in Form DIR-8 before he is appointed or re-appointed. Whenever a company fails to file the financial statements or annual returns, or fails to repay any deposit, interest, dividend, or fails to redeem its debentures, as specified in sub-section (2) of section 164, the company shall immediately file Form DIR-9, to the Registrar furnishing therein the names and addresses of all the directors of the company during the relevant financial years. When a company fails to file the Form DIR-9 within a period of thirty days of the failure that would attract the disqualification under sub-section (2) of section 164, officers of the company specified in clause (60) of section 2 of the Act shall be the officers in default. Upon receipt of the Form DIR-9 under sub-rule (2), the Registrar shall immediately register the document and place it in the document file for public inspection. Any application for removal of disqualification of directors shall
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