Must know provisions for a Director of a Company under Companies Act 2013
•
Before appointing a director in a public or
private Company, he should be qualify under section 164 of the Companies
Act 2013.
•
Apart from other disqualifications like
unsound mind or undischarged insolvent, he should possess DIN (Directors
Identification Number) before appointing as a director of Company and he should
not be convicted of the offence dealing with related party transactions under
section 188 of the Companies act 2013 at any time during the last preceding 5
years.
•
Further a person who is or has been a
director of a company which has not filed financial statements or annual returns
for any continuous period of three financial years or has failed to repay the
deposits accepted by it or pay interest thereon or to 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.
•
Company Secretary need to obtain
declaration from the director before he is appointed or reappointed in Form DIR
8 that he is disqualified and can be appointed as director.
•
This compliance will be checked by secretarial
Auditor at the time of Secretarial Audit.
•
Private Company can provide extra
disqualifications in its Articles of Association in addition with those
provided in the act.
Thank you:
Megha Aggarwal
www.makbizadvisors.com
268, Business India Complex,
Uday Park, New Delhi-110049
Call us : +91 9555250231
Thanks Meghaji...
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