Director Disqualification u/s 164(2)

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

One of my clients DIN got disqualification due to non filing of statutory returns for the f.y. 2016-17 & 2017-18 and the period of disqualification start from 01/11/2018 to 31/10/2023.

And the same directors having the directorship in other 2 companies where they have filed the statutory returns up to date.

As per my understanding of sec 164(2) read with sec 167 of CA, 2013 whether the director should be disqualified only to the defaulted company NOT all the companies where he holds directorship.

Since, I am planing to take this matter to the court by filing writ and get the relief.

Please explain with supported case laws.

Thanks in advance.

[DR.MARIAPPAN GOVINDARAJAN]

In my view the said director is not qaulified for other companies also where he holds directorship.

AI Summary

Director disqualification may render a person ineligible to hold any directorships during the prescribed disqualification period. The document presents a query whether a director disqualified for non-filing of statutory returns for specified years (disqualification dated 01/11/2018-31/10/2023) is disqualified only in the defaulting company or from all companies where he holds directorships; the recorded reply states the director is not qualified to serve in other companies either, treating the disqualification as an individual incapacity affecting all directorships during the disqualification period.