If a director has not paid any call of shares of the company and six months has been expired from the last due date.
Whether he disqualify in that company only or in all Company in which he is a director ?
For how many period he stands so disqualify ?
Thank You
- Only in the concerned company, thus no he will not be disqualified in other companies
- He will stand disqualified till the time company pays the calls but do note that as under section 167 he will also have to vacate his office.
Have a look at the following which has been taken from Section 164,
“Sec 164-Disqualifications of directors
A person shall not be eligible for appointment as a director of a company, if —
(e) -
(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 (
(2) No person who is or has been a director of a company which—
(a) -
(b) -
shall not 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.”
After going through the above provisions you would be able to understand that section 164(1) and 164(2) are independent and the provisions of
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