In this excerpt, the focus is on disqualification because of non-filing of Balance Sheets and Annual Return or similar such non-compliances (Sec 164(2) of the Companies Act, 2013)..
The following persons shall not be eligible to be re-appointed as a director of that company or appointed in other company for a period of five years from the date on which the said company –.
Every director shall inform to the company concerned about his disqualification under sub-section (2) of section 164 in Form DIR-8 before he is appointed or re-appointed (Rule 14(1) of Companies (Appointment and Qualification of Directors) Rules, 2014).
Now, it has been made the duty of the company to mandatorily intimate ROC (in e form DIR 9) about its failure, and if it fails to intimate within a period of thirty days, the Directors and officers of the company shall be the officers in default. These are far reaching consequences. Regarding Officer who is in Default, we will discuss it very soon..
Also, it has been made the duty of the Auditors to state in its Auditors Report whether any director is disqualified for non-compliances as stated above.