Removal of Directors Disqualification Without Revival of Company
Is Your Career On Pause?
Has your career come to a standstill because of your deactivated DIN? Your thriving career is facing uncertainty for five long years?
Strike off of one company has left you without the future, as you are disqualified from all others!
Why Facing Director Disqualification?
The implementation of Companies Act 2013, has seen some major changes from the previous Act of 1956. One of them is that there can be any number of directors in a company, full-time or part-time, but all of them fall under the category of ‘Officers’. There are provisions for much more strict action against an erring director, considering he is responsible for the running of the company.
The Companies Act, 2013, lays down the factors which lead to disqualification of a company’s director.
Section 164(2) enumerates that no person who is or has been a director of a company which-
- has not filed financial statements, or annual returns for a continuous period of three financial years; or
- has failed to repay the deposits accepted by it, or pay interest thereon; or
- to redeem any debentures on the due date or pay the interest due thereon; or
- pay any dividend declared and such failure to pay or redeem continues for one year or more,
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.
Awaiting The Restoration of Company?
If your disqualification has occurred due to a company being struck off by the Registrar of Companies (ROC) for defaulting on financial compliances, then your career is at stake for five years.
Are you twiddling your thumbs, waiting for the revival of Strike Off Company, so that you can restore your DIN?
Your Company is Not Yet Revived?
The 2.4 lakh companies that faced the axe of MCA in 2017, started exploring options for revival of company at the earliest. Many took the route of Condonation of Delay Scheme, 2018, a window which was opened for a limited period to help such companies. Others applied to the NCLT with a plea for revival, and based on the merits was dealt with.
But there are still many of such companies who have not been able to revive or are not inclined towards it. The director/s of such entities are left in the lurch for no mistake of their own.
Then are you counting the days until the company revives or five years of exile is over?
Be Informed of Possible Recourse To Resurrect Your Career!
Don’t be misled by the fact that the Companies Act 2013 has no remedy for people like you; there is still a remedial measure that can be taken up by you for the restoration of DIN, and that is filing a Writ Petition in the Hon’ble High Court.
It is imperative whether the struck off a company is unable to revive or not interested in doing so, Article 226 of the Constitution bestows upon you the right to file a writ petition and seek relief.
How to File A Writ Petition?
Taking professional help would be the best way to file a Writ Petition, as it is a legal procedure.
There are lots of minute details to be kept in mind while drafting a Writ Petition, and only an experienced professional in the field can do it best.
All details of the matter are required to be incorporated in it for better clarity.
Once it is filed, follow-up needs to be done, like appearances in the court on hearings, represent your case, etc. The advocate appointed by you will pursue till the Final Order is granted.
His responsibility will not end here, he will then file the High Court Order with the respective ROC. Furthermore, he will file the pending compliances with the ROC and remove the last hurdle of your path.
Once all these are done successfully, then DIN activation will be done and in this manner the professional will assist you completely in removal of Director Disqualification.
Hopeful Positive Outcome!
The good news for you is that already there have been many positive decisions given High Courts in response to the writ petitions by aggrieved directors.
Some have been granted interim relief till the judgement comes, others have got relief as the Court quashed the order of the ROC.
Courts generally were in agreement with the grievances of the directors on these:
a.) Against Natural Justice: As most of the companies and their directors never got any Notice from the ROC therefore, they could not clarify their stand nor were able to fulfill the compliances. This goes against the constitutional right of an individual.
b.) Retrospective Implementation of a Prospective Act: The Courts found it unjustified that some Sections of the Act were applied retrospectively.
c.) Contradictory Provisions in Both Acts: The judges found it objectionable that as the provisions of the Companies Act 1956 did not have these regulations for the private companies and their directors, then the new Act could not impose it on them in 2017.
Most of the Directors have got relief on these pleas.
Unsure About Who To Approach?
This is nothing to worry as you will find lots of firms and companies offering a myriad of such services.
The only factor that you need to make sure is that the firm should be reliable and trustworthy with loads of experience in dealing with such cases.
A thoroughly professional firm will not only be cost effective but also bring it to a conclusive closure in the shortest period.
Expedite Your Case With MUDS Advantage!
MUDS Consultancy Firm has been in this field for many years and enjoys an impeccable reputation. It has an experienced team which will take full responsibility of removing your disqualification, from initiation of writ petition to restoration of DIN. They have already helped 435 directors in reviving their career.
“All that a disqualified Director needs to do is take an informed decision today and save his career from being doomed”
-Shweta Gupta, Founder and CEO, MUDS