Can a Disqualified Director become Subscriber to the Memorandum in a Company to be incorporated

[THYAGARAJAN KALYANASUNDARAM]

Dear All,

Please clarify the following.

Whether a Disqualified Director can become a Subscriber to the Memorandum in a Company to be incorporated? On reading the act I find no restrictions on the same. However, when I practically tried to fill the spice+ form, I'm not able to Associate the DSC of the person who was disqualified as a director in some other company, for signing the MOA as a subscriber to the memorandum.

Can someone guide me on the Act and practical issues faced while signing the MOA.

Thank you in advance for the help.

AI Summary

Disqualified Directors Can Subscribe to MOA, But Must Avoid Director Roles to Prevent Legal Issues. A disqualified director can technically become a subscriber to the Memorandum of a newly incorporated company, as there are no explicit restrictions in the Act. However, practical issues may arise, such as difficulties in associating the digital signature certificate (DSC) for signing the Memorandum of Association (MOA). It is crucial to ensure that the disqualified individual does not assume roles such as de facto, shadow, corporate, or non-executive director, as these could lead to breaches of director disqualification rules and potential litigation.