If a private ltd company has not filed its financials for more than three years, and the directors of such company are directors in other private ltd. company also. Whether the disqualification of directors attached to non-filing of financials will apply to such other company also? does that mean that the director shall vacate office form all the companies wherein he is a director?
4 Replies
CA Nimesh Maheshwari
(Commercial Manager)
(334 Points)
Replied 14 May 2014
According to clause a of sub section 2 of section 164, "No person who is or has been a director of a company which has not filed financial statements or annual returns for any continuous period of three financial years 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."
According to clause a of sub section 1 of section 167, "The office of a director shall become vacant in case he incurs any of the disqualifications specified in section 164."
Thus on combined reading of clause a of sub section 2 of section 164 read with clause a of sub section 1 of section 167 we can construe that if a director has made a non - compliance u/s 164 (2) (a); his office shall stand vaccated u/s 167 (1) (a).
Hope this would solve your query.
Thanks.
C.S. CHANDANI SARUPARIA
(COMPANY SECRETARY)
(556 Points)
Replied 06 June 2014
Section 274(1)(g) is replaced by section 164 under the new companies act which is applicable not only to limited co bt also to pvt companies as well.
Do we need to take declaration from director under new provisions also which earlier was taken under section 274(1)(g).
RoHaN k
(CA & CS)
(308 Points)
Replied 06 June 2014
Erstwhile 274 (1) (g) is applicable to private limited company also, so be alert
If company has not filed their returns for last three years , director of such companies may come under
disqualification provisions and also will be disqualified for 5 years in existing company,
All decalaration/Disclosure proceedures are at par and applicable to all companies .
C.S. CHANDANI SARUPARIA
(COMPANY SECRETARY)
(556 Points)
Replied 06 June 2014
Can u plz share the draft format of the declaration. Thanks in advance
Recent Topics
- Clarity regarding Sec 16(4)
- GST ON HOTEL ROOMS details
- Relief for Delayed Filing of Tax Forms
- Expire stock
- INCOME TAX AY 25-26
- Experienced CA firm for accounting & auditing
- Regarding Perquisite Tax on ESOP - Unlisted Compan
- Casual Taxable Person under GST
- Extended Date of GSTR-1 for the month of July 2020
- NRO Interest - Taxed at source and in Foreign Coun
Related Threads
CAclubindia
