Director disqualification rules tightened with revised vacancy timing and penalty framework for deactivated identification numbers. Amendment of section 167 revises the vacancy rule for directors who incur disqualification under section 164(2), making the office vacant in every company after six months from disqualification or on expiry of tenure, whichever is earlier. It also replaces the earlier fine with a penalty framework where continuation after Director Identification Number deactivation or cancellation attracts a higher penalty for a listed company and a lower penalty for any other company. The date of disqualification is tied to the company's non-compliance with section 164(2).
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Director disqualification rules tightened with revised vacancy timing and penalty framework for deactivated identification numbers.
Amendment of section 167 revises the vacancy rule for directors who incur disqualification under section 164(2), making the office vacant in every company after six months from disqualification or on expiry of tenure, whichever is earlier. It also replaces the earlier fine with a penalty framework where continuation after Director Identification Number deactivation or cancellation attracts a higher penalty for a listed company and a lower penalty for any other company. The date of disqualification is tied to the company's non-compliance with section 164(2).
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