Disqualification of Directors for reasons beyond their control is a controversial issue of corporate governance under the Companies Act, 2013 (“Act”). In this article, the authors discuss the ramifications faced by Directors due to the controversial provisions of “disqualification” under the Act.
Disqualification of Director under the Act
Section 164 of the Act prescribes factors for disqualification of a Director. Any Director disqualified under this provision is disqualified to act as a Director for five years in all companies, without a pre-decision, or post-decisional opportunity of hearing.
Please click here to read the full article by Dheeraj Nair, Vishrutyi Sahni, and Angad Baxi, published in BWLegal World.
Angad’s focus areas include commercial litigation and dispute resolution. He has advised domestic and international clients regarding various civil, commercial and criminal disputes.