274. Disqualifications of directors
(1) A person shall not be capable of being appointed director of a company, if-
[(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 date of April, 1999; or
(B) has failed to repay its deposit or interest thereon on due date or redeem its debentures on done 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 other 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).]
Kindly clarify whether a director disqualified u/s 274(1)(g) can be appointed director of a private ltd. co??
The Sec. begins by stating that a person shall not be capable of being appointed director of a company.
Although Sec. 274(1)(g) does state that such person cannot be appointed as director of another public co. for 5 years.
But does that mean that he can be appointed as director of private co.??
The book i'm referring for law also states that such a person shall be disqualified from being appointed as director of public co.
Is this view correct. If yes, pls state reasons for the same.
CAclubindia
