By Shaifali Sharma (firstname.lastname@example.org)
In a move towards streamlining and strengthening the rules for directors, government has introduced and amended certain provisions in past which resulted into disqualification of lakhs of directors and deactivation of their DIN.
Recently, The Ministry of Law and Justice vide an Ordinance dated 2nd November, 2018 has now introduced a new clause adding another criteria leading to disqualification of a director.
Section 164 of the Companies Act, 2013 (‘Act’) states various disqualifications for appointment of Director in a company where sub-section (1) specifies disqualification due to personal default while sub-section (2) specifies about disqualification arising due to corporate default. This write-up endeavors to discuss the said new provision under Section 164(1) read with Section 165 and related situations in the above context. Read more