What is Director Disqualification?

According to Companies Act, there are several ethical and moral rules that the directors have to follow. If they fail at it, the Registrar of Companies removes the name of the director from the MCA registry. Removal of director’s name from the records is called disqualification of the director. Ministry of Corporate Affairs (MCA) undertook this massive drive of striking off companies for financial non-compliance mandated under Section 248 of the Companies Act, 2013. In addition to it, by the provisions under Section 164 (2) of the Act, an automatic disqualification of the Directors of such companies occurred.

Are You A Victim Of The MCA Action?

It is understandably quite unnerving if you are among one of those such unfortunate Directors who lost their thriving careers due to strike off of their companies. Section 248 of the Companies Act, 2013, mandates that companies which default on financial compliances for three consecutive years, should be struck off by the Registrar of Companies (ROC).
Worse was that you were removed as Director from all other active companies too and disqualified for 5 years from the day the company was struck off. This was a rather unjustified act by MCA as in most of the cases the directors were caught unawares, they had no inkling of what was coming their way!

Ways And Means To Remove Director Disqualification? The government did realize that the companies which were struck off needed a viable solution at the earliest and as a result opened a window temporarily, ‘Condonation of Delay’ in 2018. Many genuine companies were able to restore their status as ‘Active’ and the directors of such companies were successful in removal of director disqualification.
Other companies who missed availing this window, took the route of NCLT for revival of strike off company,making it easier for their directors to restore their career.

Still Looking For Restoration of DIN?
If your company has for some reason not taken any concrete step to become active once again, then the only option for you is to take individual and independent action. Companies Act 2013, surprisingly has no provision for relief for such Directors until and unless the company is revived and therefore, Directors like you are left helpless.


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