Tag: Risk management

If you are a director who has been disqualified, filing an application for removal of director disqualification is the first step towards getting back into the business. The National Company Law Tribunal (NCLT) has the power to remove directors’ disqualifications under certain circumstances. However, it is important to have experienced NCLT advocates and senior counsels on your side to ensure that your application is filed correctly and effectively.

The legal process in filing for the removal of a director disqualification

At Buddha Corporate Law Firm, we understand the complex legal process involved in filing for the removal of a director disqualification. Our team of NCLT lawyers consists of experienced advocates and senior counsels who specialize in corporate law matters. We provide comprehensive legal services and Reliable consulting to help our clients navigate the entire process seamlessly.

Directors play a crucial role in the functioning of a company. Furthermore, They are responsible for making important decisions that affect the organization’s growth and sustainability. However, there may be instances where directors may face disqualification due to non-compliance with the law. Meanwhile, Let us discuss the grounds for director disqualification and the remedies available to them in India.

Grounds for Director Disqualification

There are several grounds for director disqualification in India. Additionally, The most common reasons for disqualification include:

• A conviction for any offense involving moral turpitude
• Being declared insolvent or bankrupt
• Involvement in fraudulent activities
• Violation of provisions of the Companies Act
• Failure to file annual returns or financial statements for three consecutive years

In addition, Directors should be aware of these grounds and ensure that they comply with all legal requirements.

Remedies for Disqualified Directors

If a director is disqualified, they may apply for the removal of disqualification. The following are the remedies available to disqualified directors in India:

• Appeal to the National Company Law Appellate Tribunal (NCLAT): Director Disqualification by the National Company Law Tribunal (NCLT), may file an appeal with the NCLAT within 45 days from the date of the order.
• Condonation of Delay: If a director has not filed annual returns or financial statements for three consecutive years, they may apply for condonation of delay. Likewise, The NCLT may condone the delay if the director can provide valid reasons for the delay.
• Reinstatement of the Company: In a Director Disqualification due to the company’s non-compliance, they may apply for reinstatement of the company. The NCLT may order the reinstatement of the company if the director can prove that the company has complied with all legal requirements.

Find the Best Corporate Lawyers in Chennai

In conclusion, directors should ensure that they comply with all legal requirements to avoid disqualification. If a director is disqualified, they may apply for the removal of disqualification using the remedies available to them. However, it is essential to note that these remedies may be time-bound, and directors must act swiftly to avail of these remedies. Moreover, The directors must seek legal advice to understand the process and increase their chances of success. Find the Best Corporate Lawyers in Chennai

Our team takes pride in offering personal attention to each client’s case. Finally, We ensure that all necessary documents are filed accurately and on time.