14 October 2008
Can a director who has attracted disqualification u/s 274(1)(g) be eligible for reappointment in the same company (i.e is defaulting company)? (Should reasonable or literal interpretation be followed)
14 October 2008
Provisions of Section 274 of the Companies Act, 1956 were amended through Companies (Amendment) Act, 2000 (w.e.f. 13-12-2000) and a new clause (g) was inserted to sub-section (1) of this Section. Through this clause a director of a public company, which has made defaults in filing of annual accounts and annual returns and in repaying deposits/interests thereon on due date or redeeming its debentures on due date or in paying dividend for period specified in that Section, is disqualified to be appointed as director of other public companies for a period of five years from the date on which such public company(ies) so default. Hence in this case he shall not qualify for reappointment / appointment
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