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@example.com .
Reason for Disqualification
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.
1. 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
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 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.
Process of Removal of 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.
What All You Get
FAQ's 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 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.