As per section 164(2)(a), no person who is or has been a director of a
company which has not filed financial statements or annual returns for any continuous period of three financial years shall 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 fails to do so. Under the 1956 Act, such disqualification was with respect to non-filing of annual accounts or annual returns of a public company. In case, all the directors disqualify, how the company would function. Some time period needs to be given to regularize the default.
How we can apply for the DIN application of more than three persons to be appointed as director in a Private Company before its incorporation?
Section 10A was inserted in the Insolvency and Bankruptcy Code, 2016 (“Code”) for suspending the initiation of the corporate insolvency resolution process (“CIRP”) for any default arising on or after 25.03.2020 for a period of six months or such further period, not exceeding one year from such date. This amendment was introduced to provide relief to companies affected by COVID-19 pandemic by temporarily suspending the insolvency proceedings for a period six months i.e. w.e.f. 25.03.2020 till 25.09.2020.
Now, Ministry of Corporate Affairs vide notification dated 24.09.2020 has extended the temporary suspension of CIRP for a further period of three months i.e. w.e.f. 25.09.2020 to 25.12.2020.
As per the provisions of Section 10A, further extension of three months can still be granted further to the recent extension of three months.
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