Removal of Director Disqualification Consultant in Jaipur

Overview

Introduction of Removal of Director Disqualification

After the existence of Companies Act, 2013, the Ministry of Corporate Affairs due to many reasons disqualified many Directors under various sections of the Act due to which many Companies came under the risk of existence and a further hamper was seen in the corporate sector of India.

The term "Disqualification" means an act of stopping the Director from taking part in activities of the business because of the breaking of Rules either by the Director himself or by the Company. Due to the Disqualification the person is not eligible for holding the office as Director in any Company till the said disqualification is removed.

After this, many aggrieved bona fide Directors were facing issues and wanted to seek a solution for the same. There are two modes of removal of director disqualification i.e. through a writ petition or through revival of company and completion of non-compliances.

Legal Window can help you with the removal of disqualification for becoming a Director just by following certain steps by providing the best assistance, timely delivery and guaranteeing the highest customer satisfaction. You may get in touch with our team on 072407-51000 or email [email protected].

Documents

Documents Required for Removal of Director Disqualification

Checklist

Public Notice of ROC stating the DIN of Director Disqualified
PAN and Address Proof of the Director

Details

Reason for Removal of Director Disqualification

A Director who is part of the board but hasn’t filed the annual returns or financial statements for a consecutive period of three financial years.

Any person who is director and who has applied for adjudication as an insolvent or his/her application is still pending.

In case earlier an order has been passed by the court or Tribunal disqualifying the director for his appointment.

If any calls are not paid by the Director in regards to the respective shares held by him or a company, whether alone or jointly.

A director convicted of any offence by the court, thereby sentenced to the imprisonment for not less than six months.

A person shall not be eligible to get appointed as a director in any company who was convicted of any offence and sentenced to seven years in prison or more.

If the company fails to repay the accepted deposits by it or redeem any debentures on its due date or pay the interest due thereon or pay any dividend which is declared for one year or more.

If the director is of unsound mind and the competent court confirms the same.

Any director who has been convicted of any offence related to the related party transactions under section 188 of Companies Act, 2013 during the last preceding five years.

A Director who is an undischarged insolvent by any court.

Details

Remedy available when DIN has been Deactivated of disqualified director

The disqualification of director can be removed by approaching the High Court for activation of the DIN and for passing a stay order on the disqualification action taken by the Registrar of Companies. Alternatively, it can also be removed by applying for revival of struck off companies to NCLI and for activation of DIN.

Situation I: When the status of the Company is ‘strike off’ by ROC and the Directors do not intend to revive the Company by NCLT but wants to activate the DIN.

Situation II: When the status of the Company is ‘strike off’ by ROC and the Director intends to revive the Company and activate the DIN by making application to NCLT.

Removal of Disqualification: The above process would allow the Directors to activate their DIN but this action will not remove their dis-qualification. Therefore, removal of dis-qualification will be applied after the expiry of five years from the date the default is made good.

The disqualified Director shall be eligible to incorporate new company or be re-appointed as a director of that company after a period of five years by filing Form CG-1 to Central Government and affixing DIR-10 as an attachment for removal of disqualification.

Upon approval of the above form, ROC has to be intimated for removal of disqualification and for updating the DIN status in their records.

How it works

Process of Removal of Director Disqualification

1

Complete the Application Form

You are requested to first fill the simple questionnaire provided by our expert team which will enable us to know the case of removal of disqualification of director.

2

Document Processing

At the second step you will be required to produce the documents in accordance with the questionnaire filled based upon which case will be dealt so that we can arrange them as per the requirement and for further processing.

3

Drafting and filing of writ petition with High Court

This step consists of drafting a writ petition and filing the same with the High Court in accordance with the Article 226 of the Constitution of India. The High Court will order to restore the DIN of the Director.

4

Filing of Order with the ROC

After procuring the said order the same will be filed with the respective ROC for activation of DIN.

5

Activation of DIN

Lastly, the DIN is activated by the ROC and the said person is eligible from the date of activation to apply for the post of Director in any Company.

Details

Gets the disqualification removal of directors starting from ₹ 20,000/-

Professional Consultation

Drafting of Writ Petition

Filing of the matter with the respective High Court

Appearance by the Advocates and Pleading for the same

Preparation of application and filing or order and other Documents with respective ROC for Restoration of DIN

Regular follow ups with the Concerned authorities

DIN Activation and Removal of Disqualification

Questions

FAQs on Removal of Director Disqualification

DIN or Director Identification Number is unique 8 digit number allotted to any individual who intends to be director in any company. It can be obtained by filing the respective form.

As the Companies Act, 2013 provide the feature of separate legal entity, irrespective of the fact that a person was disqualified as Director can still hold shares of any Company.

You can download the list of Director's disqualified by clicking on the mentioned link Director's Disqualified.

The said person shall be eligible for appointment as Director in any Company and new Directors are required to be appointed in place of them in case the minimum number of Directors falls below the statutory limits.

Yes, He can still become a partner in any partnership firm or Sole Proprietorship Firm.

The DIN can be activated by filing the writ petition with High Court which can be completed in a span of 15-20 days.