Question

Under Section 164(2) of the Companies Act, 2013, a person who is or has been a director of a company shall not be eligible to be re-appointed as a director of that company or appointed in other companies for a period of five years, if the company in which they are a director has:

Q: Answer-Under Section 164(2) of the Companies Act, 2013, a person who is or has been a director of a company...

This provision is governed by Section 164 of the Companies Act, 2013 , which deals with the Disqualifications for Appointment of Director. 1. The Statutory Triggers Section 1642 A person is disqualified from being re-appointed in the same company or appointed in any other company for 5 years if the company in which they are a director Clause a Has not filed financial statements or annual returns for any continuous period of three financial years OR Clause b Has failed to Repay the deposits accepted by it or pay interest thereon Redeem any debentures on the due date or pay interest due thereon or Pay any dividend declared and such failure to pay or redeem continues for one year or more .