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The Director is failed to file financial statements or annual returns for consecutively for 3 financial years; or
The Director is not repaid the deposits taken or paid interest or redeemed any debentures, such failure to pay or redeem has taken place for one year or more, He/she shall also not be eligible to be re-appointed as a director of that company or any other company for a period of 5 years from the date.
The Director is of unsound mind and stands so declared by a competent court.
The Director is an undischarged insolvent.
The Director has applied to be adjudicated as an insolvent and his application is pending.
The Director has been convicted by a court of any offence, whether involving moral turpitude or otherwise, and sentenced in respect thereof to imprisonment for not less than six months and a period of five years has not elapsed from the date of expiry of the sentence. Also any person who has been convicted of any offence and sentenced to imprisonment for a period of seven years or more, will not be eligible to be appointed as a director in any company.
An order disqualifying the Director for appointment as a director has been passed by a court or Tribunal and the order is in force.
The Director has not paid any calls in respect of any shares of the company held by him, whether alone or jointly with others, and six months have elapsed from the last day fixed for the payment of the call.
The Director has been convicted of the offence dealing with related party transactions under section 188 at any time during the last preceding five years.
A Writ Petition in the High Court for Removal of Directors Disqualification is a way out.
For getting your disqualification removed, you are not required to revive your company mandatory.
The interim stay regarding removal of disqualification is obtained on the very same day on which the order is passed in the High Court for the same.
Once High Court order is passed in favour of removal of disqualification, the same shall not be revoked at any time thereafter in our opinion.
After Supreme Court order dated 6th August 2018, the High Court orders are available at present also for removal of disqualification.
Till the next date of hearing, there shall be a stay of the notices dated 6th September, 2017 and 12th September, 2017 and any other notices or communications or lists received or published whereby the petitioners were declared disqualified as Director under Section 164(2)(a) of the Companies Act, 2013.
The DIN numbers as well as digital signatures of the petitioners shall be forthwith revived.
In such a case promoter or registrar (when there is no promoter), shall appoint required number of directors in a company till the appointment of directors in general meeting.
After the 5 years of disqualification have passed, the directors have to file an application to the ROC in the form DIR 10 as per rule 14 (5) of the companies Act in order to get their names back on the list.
Irrespective of whether a disqualified director has disqualified under section 164 of the Act of vacated the office under section 167 of the Act, he/she can still continue to be shareholder of the company.