MCA vide its Notification dated January 20th , 2023, has notified Companies (Appointment and Qualifications of Directors) (Amendment) Rules, 2023.
Earlier, the directors were required to inform the concerned companies about their disqualification under section 164(2) only but now a declaration regarding disqualification under section 164(1) must also be given in form DIR-8.
Disqualification under section 164(1) occurs on the following grounds :
- Being of unsound mind.
- Being an undischarged insolvent.
- Application is pending in the court with reference to be adjudicated as an insolvent.
- Convicted by a court for any offence, involving moral turpitude and sentenced for the same for 6 months + 5 years has not elapsed from the date of expiry of the sentence.
- Convicted for any offence and imprisoned for 7 years/ more.
- An order disqualifying from appointment as a director has been passed by a court/Tribunal
- Not paid any calls in respect of any shares of the company, held alone/ jointly since 6 months from the last day fixed for the payment.
- Convicted of the offence dealing with related party transactions under section 188 at any time during the last preceding 5 years.
- Has not been alloted DIN
- Has held directorships in more than 20 Companies.
Form DIR-9 was used only when a company failed to file the financial statements/ annual returns/ repay any deposit, interest, dividend,/redeem its debentures, as specified in section 164(2). However, now , the Companies are required to file this form with the ROC within 30 days from the date when form DIR-8 is received regarding disqualification of director under section 164(1) and section 164 (2).
Post the amendment any application for removal of disqualification of directors made in Form DIR-10 is required to be filed before the Regional Director.
In the above context, forms DIR-3, DIR-3C, DIR-5, DIR-6, DIR-8, DIR-9, DIR-10, DIR-11 and DIR-12 have been revised.
The amended provisions shall come into force w.e.f. January 23rd , 2023.
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