Director Disqualification from a Company in India

Director Disqualification and Condonation

Director Disqualification has grown quite a lot in recent times. From failed startups to ignoring to file the compliances, the reasons for the same given by the Ministry of Corporate Affairs are many. If you have prevented them, you can prevent yourself from getting disqualified.

Grounds for Disqualification

The following are the grounds for director disqualification from a Company in India as per the Companies Act of 2013:

• The Director has failed to file the Annual Returns and the Financial Statements for three years in a row.
• The Director has not repaid the deposits they have taken, paid any interest, or paid any debentures. When this happens for 1 whole year, the Director is also closed.
• The Director is an un-discharged insolvent.
• The Insolvency application filed by the Director is still pending.
• The Director is involved in an offense that they are convicted of. Also, the conviction has led to imprisonment for not less than six months.
• A Court/Tribunal has passed an order that disqualifies the Director.
• The Director holds shares of a company that has not made any payment of any such call in six months.

What happens in the absence of a Director(s)?

When a director is disqualified, it does not affect the Company due to the Company’s perpetual nature. In this case, a temporary new director is hired for the time being. The other personnel of the Company takes this course of action after filing all of the overdue returns. Once they have fulfilled their returns up to the recent date, they can only hire a new director.

How can a Company reinstate a Director?

However, what you need here is reinstatement as a director. You would need an assistant to go through this long and arduous process. Therefore, Registrationwala, through its experience and experts, is here to assist you so that you can regain your position as the Director of the Company.

Eligibility Criteria for Removal of Director Disqualification

To remove director disqualification, the only eligibility criteria is for your Director not to have any hidden reasons that can stop them from being requalified as your Company’s Director. 

Documents Required for Removal of Director Disqualification

The documents are different based on the state of the Company:

• In case the Company was in function
  • A petition to NCLT
  • All the documents that are overdue under Section 403
• In case the Company was non-functional
  • A petition to the high court
  • All the documents that are overdue under Section 403
• Documents Required for Filling Cost Audit Report Through XBRL:
• Cost Audit Report in form CRA-3
• Challan of CRA-2 filed for appointment of Cost Auditor

Process for Removal of Director Disqualification 

The following procedure can be applied in filing for the removal of the Director Disqualification from a Company in India:

1. Drafting a Write Petition for the Removal
2. Filing your issue with the high court
3. Send your legal representatives
4. Obtain the final order from the court
5. File the compliance documents and adhere to the high court’s orders
6. Get reinstated, and MCA shall reactivate your DIN

How can we help you with the Removal of the Director Disqualification? 

We at Registrationwala provide end-to-end solutions for the removal of director disqualification. Our services include:

• Collection of information and starting the process
• Drafting the application
• Reviewing the draft and making changes if necessary
• Representing your case in front of the tribunal

Registrationwala.com is a leading legal consultancy firm providing comprehensive services relating to the removal of director disqualification.

Contact us now if you seek to remove the director disqualification.  

FAQs

Q. What is the process of Director Disqualification in India?

A. The following procedure can be applied in filing for the removal of the Director Disqualification from a Company in India:

1. Drafting a Write Petition for the Removal
2. Filing your issue with the high court
3. Send your legal representatives

To know more about the process, refer to the process section of this web page.

Q. How can I register for the Director’s Disqualifications in India?

A. To know how to register for Director’s disqualifications in India, refer to the process section of this page. We have detailed every aspect of the removal procedure for the Director’s disqualifications in India. To know more, connect with the Incorporations Experts at Registrationwala. They will detail every aspect of the removal procedure to you. To know more, connect with the Incorporation Team at Registrationwala.

Q. Where can I avail of the best Director Removal company services in India?

A. Registrationwala provides the best end-to-end solutions for the removal of director disqualification. Our services include:

• Collection of information and starting the process
• Drafting the application
• Reviewing the draft and making changes if necessary
• Representing your case in front of the tribunal

Q. What is the eligibility requirement MCA puts forth for the removal of Disqualified Directors in India?

A. To remove director disqualification, the only eligibility criteria is for your Director not to have any hidden reasons that can stop them from being requalified as your Company’s Director. 

Q. What is the required documentation for filing for the removal of disqualification of directors in India?

A. The documents are different based on the state of the Company:

• In case the Company was in function
  • A petition to NCLT
  • All the documents that are overdue under Section 403
• To know more, refer to the documents section of this web page. 

Q. How can one remove a director from a registered company in India?

A. To know how to remove a director from a registered Company in India, refer to the process section of this page. We have detailed every aspect of the removal procedure for the Director’s disqualifications in India. To know more, connect with the Incorporations Experts at Registrationwala. They will detail every aspect of the removal procedure to you. To know more, connect with the Incorporation Team at Registrationwala.

Q. How to remove the disqualification of directors from its Company in India?

A. To know how to remove the disqualification of directors from its Company, refer to the process section of this page. We have detailed every aspect of the removal procedure for the Director’s disqualifications in India. To know more, connect with the Incorporations Experts at Registrationwala. They will detail every aspect of the removal procedure to you. To know more, connect with the Incorporation Team at Registrationwala.

Q. How to register for disqualified directors in India?

A. To know how to register disqualified directors in India, refer to the process section of this page. We have detailed every aspect of the removal procedure for the Director’s disqualifications in India. To know more, connect with the Incorporations Experts at Registrationwala. They will detail every aspect of the removal procedure to you. To know more, connect with the Incorporation Team at Registrationwala.

Q. How to reactivate the deactivated DIN number of a Director in India?

A. To reactivate your DIN from a Director in India, refer to the process section of this page. We have detailed every aspect of the removal procedure for the Director’s disqualifications in India. To know more, connect with the Incorporations Experts at Registrationwala. They will detail every aspect of the removal procedure to you. To know more, connect with the Incorporation Team at Registrationwala.

Q. How to remove the Disqualification of Directors after five years?

A. To know how to remove the Disqualification of Directors after five years, refer to the process section of this page. We have detailed every aspect of the removal procedure for the Director’s disqualifications in India. To know more, connect with the Incorporations Experts at Registrationwala. They will detail every aspect of the removal procedure to you. To know more, connect with the Incorporation Team at Registrationwala.

Q. Can I Director be disqualified for non-filing of Annual Returns in India?

A. Yes, the MCA can disqualify an associate DSC on charges of annual returns non-compliance.

Q. What are some reasons for director disqualification in a Company in India?

A. The following are the grounds for director disqualification from a Company in India as per the Companies Act of 2013:

• The Director has failed to file the Annual Returns and the Financial Statements for three years in a row.
• The Director has not repaid the deposits they have taken, paid any interest, or paid any debentures. When this happens for 1 whole year, the Director is also closed.

To know more, refer to the introduction section of this web page.

Q. How to remove someone from Directorship in a Company?

A. To know how to remove someone from Directorship in a Company, refer to the process section of this page. We have detailed every aspect of the removal procedure for the Director’s disqualifications in India. To know more, connect with the Incorporations Experts at Registrationwala. They will detail every aspect of the removal procedure to you. To know more, connect with the Incorporation Team at Registrationwala.