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		<title>Private Limited Company Registration in Kolkata Via Online Method</title>
		<link>https://muds.co.in/private-limited-company-registration-in-kolkata-via-online-method/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Tue, 03 May 2022 08:52:16 +0000</pubDate>
				<category><![CDATA[Consulting]]></category>
		<category><![CDATA[Debt Recovery]]></category>
		<category><![CDATA[Directors Disqualification]]></category>
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					<description><![CDATA[<p>Private Limited Company Registration in Kolkata&#160; In this post, we’ll look at how to register a business in Kolkata. Company registration is a procedure through which all businesses are registered on the MCA’s website (Ministry of Corporate Affairs). The Company Registration in Kolkata is a simple procedure, but it requires numerous procedures to complete. A [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/private-limited-company-registration-in-kolkata-via-online-method/">Private Limited Company Registration in Kolkata Via Online Method</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h2>Private Limited Company Registration in Kolkata&nbsp;</h2>
<p>In this post, we’ll look at how to register a business in Kolkata. Company registration is a procedure through which all businesses are registered on the MCA’s website (Ministry of Corporate Affairs). The Company Registration in Kolkata is a simple procedure, but it requires numerous procedures to complete.</p>
<p>A Private Limited Company offers its stockholders legal protection and limited liability. A privaely held limited firm must have at least positions two working directors. A person can be both a director and a shareholder in a Private Limited Company. After receiving a Certificate of Incorporation, a Private Limited Company (PLC) can begin operations. Within 15 days following its application, a PLC can be implemented.</p>
<p>As a result, we will concentrate on the advantages and procedures of forming a Private Limited Company registrationin Kolkata in this post.</p>
<h2 data-fontsize="20" data-lineheight="24"><b>Advantages of forming a private firm company registration in Kolkata</b></h2>
<ol>
<li aria-level="1">A private limited company might have anything from two to fifty directors.</li>
<li aria-level="1">It is a legal autonomous body.</li>
<li aria-level="1">Directors have limited liability and are not directly responsible for the company’s operations.</li>
<li aria-level="1">Directors are only partially liable to creditors.</li>
<li aria-level="1">In the event of a default, the bank or creditors will sell the company’s assets rather than personal property.</li>
<li aria-level="1">The directors are eligible for tax benefits.</li>
<li aria-level="1">Suing or being sued in the name of a registered corporation is possible.</li>
<li aria-level="1">Companies that are registered have a higher chance of borrowing money.</li>
</ol>
<h2><b>Company Registration in Kolkata: Private Company Incorporation Checklist</b></h2>
<ul>
<li aria-level="1"><b>Directors:</b>&nbsp;For private company registration in Kolkata, a minimum of two directors is required, with one of them being a resident director.</li>
<li aria-level="1"><b>The investment</b>&nbsp;must be made in accordance with the business type, and there is no minimum capital investment necessary for a firm.</li>
<li aria-level="1">Inventive business name: The name of the firm must not be identical or confusingly similar to that of another company.</li>
<li aria-level="1"><b>Registered address:</b>&nbsp;Every business should have one.</li>
</ul>
<h2><b>Steps for Incorporation of the Company</b></h2>
<p><i>The following are the stages of forming a business using the RUN form:</i></p>
<ol>
<li aria-level="1"><i>After that, create a login account and log in.</i></li>
<li aria-level="1"><i>Enter the name you want to use and cross-reference it with the MCA database.</i></li>
<li aria-level="1"><i>If an established business wants to reverse its name, a CIN will be requested through the RUN e- form.</i></li>
<li aria-level="1"><i>The applicant must specify the name that he or she wishes to keep on file in case the firm’s name is changed or a new company is formed.</i></li>
<li aria-level="1"><i>Then he or she must submit the prospective company’s objects as well as any additional documents in support of the suggested name.</i></li>
</ol>
<h3><b>Limited Name Validity</b></h3>
<ul>
<li aria-level="1">For a new corporation, an authorised name is valid for 20 days from the date of approval.</li>
<li aria-level="1">60 days after the date of authorization for changing the name of an established corporation.</li>
</ul>
<h2><b>Steps for Private Company Registration in Kolkata</b></h2>
<h3><b>Step 1: Obtain DSC</b></h3>
<p>Because the process is online, a digital signature is required for the incorporation of a private limited company. Members and executives must have a legitimate Class II or Class III DSC.</p>
<h3><b>Step 2: Fill out an application for a DIN number.</b></h3>
<p>A directors must have a DIN and must apply for one on MCA if he does not already have one. A DIN number can be used to become a director in many&nbsp;<a href="https://timesofindia.indiatimes.com/blogs/voices/retrieve-your-lost-and-unclaimed-investment-made-in-shares-and-find-lost-shares-and-understand-the-process-of-recovering-them/?fbclid=IwAR2_cdzzvVYRtdMtNZw5qhHOwkPftQPP2kpDmj0358shoGMjcALSXi4pPY0">businesses</a>.</p>
<h3><b>Step 3: Submit an application for name approval</b></h3>
<p>At the time of establishment, the company’s name, as well as SPICe (INC-32) must be submitted for approval. If the name is rejected, it can be resubmitted.</p>
<h3><b>Step 4:&nbsp;</b>e-MoA (INC-33) and e-AoA are the fourth and final steps (INC-34)</h3>
<p>Previously, MoA and AoA had to be filed physically, but now they must be filed online on the MCA website. These papers must be digitally signed by the subscribers.</p>
<h3><b>Step 5: PAN and TAN applications</b></h3>
<p>After all of the paperwork have been completed, the applicant should consider applying for a PAN and TAN.</p>
<h3><b>Step 6: Certificate of Incorporation&nbsp;</b></h3>
<p>MCA &amp; RoC will analyse all of the documentation and issue a Certificate of Incorporation if they are pleased. The Certificate of Incorporation is a legal document that grants the firm legal standing.</p>
<h3><b>7th Step: Open bank Accounts</b></h3>
<p>The firm must create a bank account for any transactions in its name after receiving the certificate of incorporation.</p>
<p><b>In order to register a company in Kolkata, you’ll need the following documents</b></p>
<p>Documents required for company registration&nbsp; in Kolkata:</p>
<ol>
<li aria-level="1">For DSC&nbsp;</li>
<li aria-level="1">DIN (Director Identification Number)</li>
<li aria-level="1">Incorporation of a Business</li>
</ol>
<h2><b>In the case of DSC,</b></h2>
<ol>
<li aria-level="1">Along with the DSC application form, the following papers must be forwarded:</li>
<li aria-level="1">The claimant’s photograph (to be stamped across with a blue pen)</li>
<li aria-level="1">The director’s address proof (s)</li>
<li aria-level="1">Id Proof (<a href="https://muds.co.in/process-for-name-change-in-pan-card/">Pan Card</a>) of the applicant Passport Aadhar card Driving licence Voter Id card Email Id and contact number (for each director)</li>
</ol>
<h2><b>DIN</b></h2>
<p>Fill out the e-form DIR -3, which is available on the MCA website. Alongside Form DIR -3, attach the supporting information:</p>
<ol>
<li aria-level="1">Id proof photo of the applicant (attested)</li>
<li aria-level="1">Proof of address (attested)</li>
<li aria-level="1">Make the payment as directed. The only way to pay is on the internet.</li>
<li aria-level="1">There will be a preliminary DIN created.</li>
<li aria-level="1">A preliminary DIN becomes an authorised DIN after verification.</li>
</ol>
<ul>
<li aria-level="2">For a Firm’s Registration</li>
<li aria-level="2">The Firm’s Title</li>
<li aria-level="2">The firm’s assets</li>
<li aria-level="2">Investors’ list</li>
<li aria-level="2">The director’s Id proof is the company’s purpose (s)</li>
</ul>
<ol>
<li aria-level="1">Aadhar card and passport</li>
<li aria-level="1">Id cards for voters and driver’s licence</li>
<li aria-level="1">Director’s proof of residence (s)</li>
<li aria-level="1">Bank statement Telephone bill</li>
<li aria-level="1">The cost of electricity</li>
<li aria-level="1">Mobile phone bill (not old than two months)</li>
<li aria-level="1">INC-9 Director(s) Consent (form DIR-2) (Affidavit)</li>
</ol>
<ul>
<li aria-level="1">Proof of the registered office’s address</li>
</ul>
<ol>
<li aria-level="1">Bills of Gas,&nbsp;</li>
<li aria-level="1">Phone, and</li>
<li aria-level="1">Electricity</li>
</ol>
<p>If the office is included in the lease, the lease agreement and a letter of authorization from the owner are required.</p>
<h2><b>Holders of DINs declare themselves</b></h2>
<p>A Private Limited&nbsp;<a href="https://muds.co.in/company-registration-2/">Company Registration</a>&nbsp;in Kolkata is an online operation that should be completed with caution, and once completed, the directors are entitled to all of the privileges of a Private Limited Company.</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/private-limited-company-registration-in-kolkata-via-online-method/">Private Limited Company Registration in Kolkata Via Online Method</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></content:encoded>
					
		
		
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		<item>
		<title>New Monetary Policy 2022: Repo Rate Remained Unchanged</title>
		<link>https://muds.co.in/new-monetary-policy-2022-repo-rate-remained-unchanged/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Tue, 03 May 2022 08:23:53 +0000</pubDate>
				<category><![CDATA[Consulting]]></category>
		<category><![CDATA[Corporate Insolvency Resolution Process]]></category>
		<category><![CDATA[Debt Recovery]]></category>
		<category><![CDATA[Directors Disqualification]]></category>
		<category><![CDATA[disqualification of directors]]></category>
		<category><![CDATA[Disqualifications of Directors]]></category>
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		<category><![CDATA[Insolvency and Bankruptcy code]]></category>
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					<description><![CDATA[<p>New Monetary Policy 2022 Releases from the RBI Monetary Policy 2022 Meeting: The six-member Monetary Policy 2022 Committee (MPC), led by Reserve Bank of India (RBI) Governor Shaktikanta Das, maintained the repo rate at 4% and the reverse repo rate at 3.35 % intact. Here’s what the governor of India’s central bank said. RBI Monetary [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/new-monetary-policy-2022-repo-rate-remained-unchanged/">New Monetary Policy 2022: Repo Rate Remained Unchanged</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h1>New Monetary Policy 2022</h1>
<p>Releases from the RBI Monetary Policy 2022 Meeting: The six-member Monetary Policy 2022 Committee (MPC), led by Reserve Bank of India (RBI) Governor Shaktikanta Das, maintained the repo rate at 4% and the reverse repo rate at 3.35 % intact. Here’s what the governor of India’s central bank said.</p>
<p><b>RBI Monetary Policy 2022: The Reserve Bank of India’s (RBI) Monetary Policy 2022 Committee (MPC) retained the repo rate at 4% for the 11th straight approach achieves a ‘affiliative posture,’ according to RBI Governor Shaktikanta Das on Friday.</b></p>
<p><b>The MPC decided unanimously to continue the accommodating approach, according to the central bank governor, and the reverse repo rate was also remained steady at 3.35 percent.</b></p>
<p>The Marginal Standing Facility (MSF) rates and the lending rate were likewise held steady at&nbsp;<b><i>4.25 percent.</i></b></p>
<p>On May 22, 2020, the RBI reduced its policy repo rate, or short-term lending rate, in an off-policy cycle to boost demand by decreasing interest rates to a historic low.</p>
<p>In a press conference following the Monetary Policy 2022 meeting, Das stated that the RBI will return the liquidity adjustment facility (LAF) corridor to 50 basis points (bps), as it was pre-Covid. The MSF rate and the bank rate remain at 4.25 percent.</p>
<p><b><i>“It also agreed to remain accommodating while concentrating on withdrawal of accommodation to ensure that inflation remains within the goal moving ahead, while encouraging expansion,”&nbsp;</i></b></p>
<p>-he added on the central bank’s attitude.</p>
<p>” It will continue to be part of the RBI’s toolbox, and its use will be at the discretion of the RBI for objectives that are indicated from time to time. The FRRR, in conjunction with the SDF, will increase the flexibility of the RBI’s liquidity management framework.”</p>
<p>The RBI reduced its growth prediction for the current fiscal year to 7.2 percent from 7.8 percent previously, while increasing its inflation forecast to 5.7 percent from 4.5 percent.</p>
<p>He went on to say that, given the inordinate volatility in international oil prices as of early February, as well as the extreme uncertainty surrounding the evolving geopolitical tensions, any projection of growth and inflation is fraught with risk, and is largely dependent on future oil and commodity price developments.</p>
<p>Das addressed liquidity and financial market circumstances in his speech, stating that the RBI will continue to take a sophisticated and agile approach to liquidity risk management while preserving appropriate liquidity in the system.</p>
<p>“At the moment, liquidity management is distinguished by two procedures: variable rate reverse repo (VRRR) bids of varied maturities to swallow liquidity, and variable rate repo (VRR) auctions to fill temporary liquidity problems and offset anomalies.” “We will keep taking this strategy,” he stated.</p>
<h2 data-fontsize="20" data-lineheight="24"><b>ATM cash withdrawal without a card that is interoperable</b></h2>
<p>In an effort to combat fraud, the Reserve Bank of India agreed on Friday to allow all banks to use card-less cash withdrawal through ATMs. Currently, card-less cash withdrawal via ATMs is a permissible form of transaction allowed by a few banks in the nation on an as-needed basis (for their customers at their own ATMs).</p>
<h3><b>Economic experts and market analysts reacted as follows:</b></h3>
<ul>
<li aria-level="1">The severe reduction in GDP forecasts for FY23 and significant increase in inflation expectations for FY23 might suggest some tightening measures in the future, which would be supported by the shift in posture to focus on withdrawal of accommodation. Current geopolitical developments, supply chain concerns, and commodity price increases are tying the RBI’s hands and pushing it to progressively turn hawkish, despite its desire to maintain its pro-growth perspective. The 10-year Gsec yield has increased to 7%, showing the street’s worry over the massive borrowing programme in the face of rising interest rates.”</li>
<li aria-level="1">“Retaining the repo rate at 4% and the reverse repo rate at 3.35 percent, continuing with the accommodating posture on expected lines,” said V K Vijayakumar, Chief Investment Strategist at Geojit&nbsp;<a href="https://muds.co.in/">Financial Services</a>. Recognizing the new reality of increased petroleum prices caused by the war, the RBI cut the FY23 GDP growth rate prediction to 7.2 percent from 7.8 percent before and upped the FY23 CPI inflation projection to 5.7 percent from 4.5 percent previously. This is predicated on the premise that crude will be $100 per barrel. This suggests that if crude falls considerably, which is likely if the conflict ends soon, GDP and inflation will improve.The opposite might be true if the battle escalates and petroleum prices rise well beyond $100. The Governor correctly underscored India’s macroeconomic fundamentals, noting to an improvement in the external position aided by record exports, large foreign reserves of $608 billion, and banking sector development. The SDF (Standing Deposit Facility) is a new mechanism established by the central bank to absorb liquidity.&nbsp;</li>
</ul>
<p>“The recent RBI Monetary Policy 2022 did not include any surprises,” stated Nish Bhatt, Founder &amp; CEO of Millwood Kane International, “it held rates constant for the 11th straight policy.” However, it has clearly outlined the road to policy unwinding. The emphasis will now be on withdrawing the accommodating policy stance in order to keep inflation under control. The&nbsp;<a href="https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53601">RBI’s statement today</a>&nbsp;plainly suggests the end of loose Monetary Policy 2022, which is reflected in the 10-year benchmark yield, which has reached a multi-year high.&nbsp;The unwinding of liquidity will cause some instability, and it is expected that the RBI would drop the growth rate prediction for FY23 to 7.2 percent, with the inflation target raised to 5.7 percent from 4.5 percent previously. The explicit goal of central banks throughout the world is to manage inflation, unwind lose money, and concentrate on gradual and steady development.“</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/new-monetary-policy-2022-repo-rate-remained-unchanged/">New Monetary Policy 2022: Repo Rate Remained Unchanged</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></content:encoded>
					
		
		
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		<title>POSH Act: ALL ABOUT THE SEXUAL HARASSMNET LAW IN INDIA</title>
		<link>https://muds.co.in/posh-act-all-about-the-sexual-harassmnet-law-in-inida/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Tue, 03 May 2022 07:03:53 +0000</pubDate>
				<category><![CDATA[PoSH]]></category>
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		<category><![CDATA[disqualification of directors]]></category>
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		<category><![CDATA[Insolvency and Bankruptcy code]]></category>
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					<description><![CDATA[<p>POSH Act: ALL ABOUT THE SEXUAL HARASSMENT LAW&#160; Sexual harassment law:&#160;The word “workplace” confers to the Sexual&#160;harassment at workplace&#160;of Women at Workplace (Regulation, Prevention, and Redressal) Posh Act of 2013, and specifically includes: All offices or other locations where the Company does business. All Company-related activities undertaken at any other place that is not the [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/posh-act-all-about-the-sexual-harassmnet-law-in-inida/">POSH Act: ALL ABOUT THE SEXUAL HARASSMNET LAW IN INDIA</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h2>POSH Act: ALL ABOUT THE SEXUAL HARASSMENT LAW&nbsp;</h2>
<p><b>Sexual harassment law:</b>&nbsp;<b><i>The word “workplace” confers to the Sexual&nbsp;</i></b><b>harassment at workplace</b><b><i>&nbsp;of Women at Workplace (Regulation, Prevention, and Redressal) Posh Act of 2013, and specifically includes:</i></b></p>
<div class="post-content">
<ol>
<li>All offices or other locations where the Company does business.</li>
<li>All Company-related activities undertaken at any other place that is not the Company’s premises and is under the authority of the employers.</li>
<li>Any social, business, or other activities and/or events, seminars, or corporate gatherings where the behavior and/or commencements may have a negative influence on working women workers participating in the event.</li>
</ol>
<h2><b>HOW TO PREVENT SEXUAL HARRASSMENT</b></h2>
<p>Sexual harassment law prevention—</p>
<p>(1) No woman shall be exposed to sexual harassment in any job.</p>
<p>(2) If any of the below events take place, are presented in conjunction with, or are connected to any act or behavior of gender based violence, they may be considered sexual assault:</p>
<ul>
<li aria-level="1">Inferred or clear and specific assure of favorable treatment in her workplace;</li>
<li aria-level="1">Inferred or imminent threat of harassment at workplace and discrimination in her workplace;&nbsp;</li>
<li aria-level="1">Inferred or actual assault about her current or future job status; or&nbsp;</li>
<li aria-level="1">Intervention with her job role or creation of a threatening, objectionable, or hostile work environment for her; or</li>
<li aria-level="1">Mortifying treatment likely to damage her safety and wellbeing</li>
</ul>
<p>All Group/Company personnel have a personal duty to ensure that their actions do not violate this policy. All workers are asked to underline the importance of maintaining a sexual harassment at workplace-free workplace.</p>
<h4><b>Grievance Procedure:&nbsp;</b></h4>
<p>In the Company/Group, a suitable complaint mechanism in the form of a “Internal Complaints Committee” (ICC) has been established for the timely redress of the victim employee’s complaint.</p>
<h2><b>ESTABLISHMENT OF INTERNAL COMPLAINTS COMMITTEE (ICC):</b></h2>
<p>All personnel at the site who are covered by the committee are informed of the committee’s details (workplace).</p>
<h3><b><i>Each location’s committee consists of the following individuals:</i></b></h3>
<ul>
<li aria-level="1">A woman in a top position in the company or workplace serves as the presiding officer.</li>
<li aria-level="1">At least two staff who are devoted to the cause of women and/or have legal expertise;</li>
<li aria-level="1">One representative from a non-governmental group or association dedicated to the cause of women, or a person knowledgeable about sexual harassment concerns.</li>
</ul>
<h3><b>The Internal Complaints Committee is in charge of the following:</b></h3>
<ul>
<li aria-level="1">Receiving sexual harassment at workplace allegations in the workplace.</li>
<li aria-level="1">Initiating and conducting an investigation in accordance with the Act’s stated procedure.</li>
<li aria-level="1">Inquiry results and suggestions are submitted.</li>
<li aria-level="1">collaborating with the employer to put necessary measures in place.</li>
<li aria-level="1">Following the established policy of maintaining tight secrecy throughout the process.</li>
<li aria-level="1">Discourage and prevent sexualharassment at workplace.</li>
</ul>
<h2><b>PROCEDURES FOR RESOLVING, SETTLING, OR PROSECUTING SEXUAL HARASSMENT LAW:</b></h2>
<p>As follows, the Company is dedicated to creating a supportive atmosphere for resolving sexual harassment complaints:</p>
<ol>
<li aria-level="1">When an episode of sexual harassment happens, the victim of such conduct can instantly convey their displeasure and concerns to the harasser, as well as urge that the harasser act respectfully. If the harassment continues, or if the victim feels uncomfortable confronting the harasser directly, the victim may submit their concerns to the Internal Complaints Committee (ICC) for resolution of their issues. Following that, the Internal Complaints Committee will give advise or assistance as needed, as well as conduct a quick investigation to settle the situation.</li>
</ol>
<p>&nbsp;</p>
<h3><b>Charge under sexual harassment law</b></h3>
<ol>
<li>An employee with a harassment complaint who is uncomfortable with or has exhausted the informal settlement alternatives may file a formal complaint with the Presiding Officer of the Management’s Internal Complaints Committee. Any aggrieved woman may file a complaint of sexual harassment at work with ICC within 3 (three) months of the date of the incident, or in the case of a series of incidents, within 3 (three) months of the last incident, and ICC may, for reasons to be recorded in writing, extend the time limit not exceeding three months if the circumstances of the case are satisfied.</li>
<li>In the event that such a complaint cannot be made in writing, the Presiding Officer or any&nbsp;<a href="https://muds.co.in/composition-and-duties-of-the-internal-complaints-committee/">member of the ICC</a>&nbsp;shall provide the woman with all reasonable help in writing the complaint.</li>
<li>Before launching an investigation under Section 11 of the Posh Act, the ICC may, at the request of the aggrieved woman, attempt to resolve the matter through conciliation, provided that no monetary settlement is made as a basis for conciliation, and where a settlement is reached, the ICC shall record the settlement and forward it to the employer for action as specified in the recommendation. Following that, the ICC will send the aggrieved ladies and the respondent with copies of the settlement as recorded, and no further investigation will be done.</li>
<li>If the aggrieved woman notify the ICC under the&nbsp;<a href="https://muds.co.in/posh-act-2013-sexual-harassment-women-workplace/">posh act</a>&nbsp;that any term or condition of the settlement reached under Section 10 (2) has not been met by the respondent, the ICC shall conduct an investigation or, as the case may be, forward the complaint to the police, and for the purpose of conducting an investigation, the ICC shall have the same powers as a Civil Court when trying a suit under the Code of Civil Procedure, 1908.</li>
<li>The ICC must finish the investigation under Section 11(1) within 90 days.&nbsp;</li>
</ol>
<h3><b>Any of the following can be used as a basis for disciplinary action:</b></h3>
<ol>
<li>Formal sincerely apologise;&nbsp;</li>
<li>Reduction to a lower grade;&nbsp;</li>
<li>Written warning with a copy kept in the employee’s file;&nbsp;</li>
<li>Suspension or termination of promotion for two years or more depending on the sensitivity of the case;&nbsp;</li>
<li>Any other appropriate disciplinary action as deemed</li>
</ol>
<h3><b>1. Report of the Inquiry under the sexual harassment law:</b></h3>
<p>The ICC must provide the inquiry report to the parties concerned within 10 days after the conclusion of the investigation.</p>
<h3><b>2. Penalties For False Or Intentionally False Complaints And False Evidence:</b></h3>
<p>If the ICC determines that the complainant made the complaint knowing it was false or produced any forged or misleading document, it may advise the employer to take action against the aggrieved women or the person who made the complaint with wrongful intent, as the case may be, in accordance with the provisions of the services rules applicable to her or him or, if no such service rules exist, in accordance with the provisions of the services rules applicable to her or him.</p>
<h3><b>3. Penalties for Making a False Or Malicious Complaint and Providing False Evidence:</b></h3>
<p>If the ICC determines that the complainant made the complaint knowing it was false or produced any forged or misleading document, it may advise the employer to take action against the aggrieved woman or the person who made the complaint with wrongful intent, as the case may be, in accordance with the provisions of the rules of the service applicable to her or him, or where no such service rules exist, in such a matrimonial situation.</p>
<h3><b><i>Annual report preparation: It must include the following information:</i></b></h3>
<ol>
<li>a) The number of sexual harassment complaints received each year;&nbsp;</li>
<li>b) The number of complaints resolved each year;</li>
<li>c) The number of cases pending for more than 90 days;&nbsp;</li>
<li>d) The number of workshops held to raise awareness about sexual harassment at workplace;&nbsp;</li>
<li>e) The type of action taken by the employer or district magistrate.</li>
</ol>
<h2><b>Security:</b></h2>
<p>The Company realises how difficult it is for a victim to come forward with sexual harassment at workplace complaints and respects the victim’s desire to keep the matter private.</p>
<h2><b>COMPLAINANT / VICTIM PROTECTION:&nbsp;</b></h2>
<p>The Company is dedicated to ensuring that no employee who reports harassment at workplace is subjected to retaliation in any way. Any retaliation will result in disciplinary action. When dealing with sexual harassment accusations, the Company will guarantee that the victim or witnesses are not mistreated or discriminated against. Anyone who abuses the system (for example, by intentionally making an accusation knowing it is false) will face disciplinary action as outlined in the Act.</p>
<h2><b>CONCLUSION:</b></h2>
<p>Finally, the Company reaffirms its commitment to creating a harassment-free and discrimination-free workplace where each worker is regarded with decency and respect. Posh act or sexual harassment law&nbsp;<a href="https://en.wikipedia.org/wiki/Sexual_Harassment_of_Women_at_Workplace_(Prevention,_Prohibition_and_Redressal)_Act,_2013#:~:text=The%20Sexual%20Harassment%20of%20Women,Parliament)%20on%203%20September%202012.">ensures safety of females</a>&nbsp;at online and offline workplaces.&nbsp;</p>
</div>
<div class="fusion-meta-info">&nbsp;</div>
<p>The post <a rel="nofollow" href="https://muds.co.in/posh-act-all-about-the-sexual-harassmnet-law-in-inida/">POSH Act: ALL ABOUT THE SEXUAL HARASSMNET LAW IN INDIA</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<title>Director Disqualification: A Speed Breaker in Directors’ Career</title>
		<link>https://muds.co.in/director-disqualification-a-speed-breaker/</link>
		
		<dc:creator><![CDATA[Shweta Gupta]]></dc:creator>
		<pubDate>Wed, 09 Dec 2020 12:16:48 +0000</pubDate>
				<category><![CDATA[Others]]></category>
		<category><![CDATA[Removal of Director]]></category>
		<category><![CDATA[Removal of Disqualification of Directors]]></category>
		<category><![CDATA[Directors Disqualification]]></category>
		<category><![CDATA[disqualification of directors]]></category>
		<category><![CDATA[disqualified directors]]></category>
		<category><![CDATA[removal of director]]></category>
		<category><![CDATA[removal of director disqualification]]></category>
		<category><![CDATA[removal of directors disqualification]]></category>
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					<description><![CDATA[<p>Director Disqualification: A Speed Breaker in Directors’ Career Have you ever thought if not disqualified how good your career as a director would have been? Or how to remove this speed breaker from your career without letting it slow you down? One question that every director have in their mind is, if facing disqualification, what [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/director-disqualification-a-speed-breaker/">Director Disqualification: A Speed Breaker in Directors’ Career</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h1>Director Disqualification: A Speed Breaker in Directors’ Career</h1>
<p><i>Have you ever thought if not disqualified how good your career as a director would have been? Or how to remove this speed breaker from your career without letting it slow you down? One question that every director have in their mind is, if facing disqualification, what is the best way to deal with it or what can be the best way to get the <a class="mozbar-highlight-followed-wGA7MhRhQ3WS" href="https://muds.co.in/removal-of-directors-disqualification/"><strong>director disqualification REMOVED</strong></a>?</i></p>
<p>The answer to this question depends on the choices made by the director: <b>whether he just wants to continue his career as a director, or he wants to be the director in the old company?</b> If he chooses the latter one, he might need to <a class="mozbar-highlight-followed-wGA7MhRhQ3WS" href="https://muds.co.in/revival-of-strike-off-company/"><strong>revive the company</strong></a> first, and if he chooses to continue with his directorship in other firms, then there are other ways, to get his disqualification removed. We will discuss those other ways in detail in this blog.</p>
<p>Before understanding how to remove the<b>&nbsp;disqualification</b> lets first understand the concept of it:</p>
<p>Under the <b>Companies Act Of 2013, </b>every registered company is required to provide annual returns or financial statements of the company to ROC for three years consecutively. If any company fails to do so, then the director of that company gets disqualified for the period of five years from being a director in that company or any other companies.&nbsp;&nbsp;</p>
<p>The new version of Companies act has a stricter policy for defaulters than the previous ones, as the director is held responsible for the smooth and regular functioning of any company. Hence, they are considered responsible for the actions taken on the behalf of the company that leads to the failure in complying with the directions of the government, and strict actions are taken against them.</p>
<p>As we discussed earlier, there could be two types of <a class="mozbar-highlight-followed-wGA7MhRhQ3WS" href="https://muds.co.in/removal-of-directors-disqualification/"><strong>removal of disqualification</strong></a>, one where the revival of the company is required and one where the only the disqualification of any director is removed. It is essential to understand that these two follow different procedure and they fall under jurisdictions of different regulatory bodies, i.e. the power of reviving the companies lies with the National Company Law Tribunal (NCLT) and the power to decide upon cases of removal of director disqualification lies with Hon’ble High Courts.</p>
<h2><b>Grounds on Which Director Might Get Disqualified</b></h2>
<ul>
<li>If a person has been declared of unsound mind by any competent court.</li>
<li>Any director who has undischarged insolvent can be disqualified by the court and if that insolvency has been applied for but the application is still pending.</li>
<li>If that person has already declared disqualified by court/tribunal.</li>
<li>If a person is sentenced to imprisonment for not less than six months or has been convicted by a court in an immoral offense.</li>
<li>When the director fails to obtain Director Identification Number (“DIN”).</li>
<li>When the company in which that person is director fails to file their annual returns or financial statements to ROC for a running period of three years.</li>
<li>When the company fails to pay a dividend that was declared for over a year.</li>
<li>If the company for over a year fails to redeem debentures or pay interest on debentures.</li>
<li>When the company for over a year fails to pay interest on/ repay the deposits.</li>
<li>If any director holds shares in any company be it alone or in collaboration and he fails to inform about it.</li>
</ul>
<h3><b>Different Ways of Seeking Relief from Director Disqualification:</b></h3>
<p>In the beginning, when the new companies act was just introduced there were no such remedies available for directors who were disqualified by the ROC, according to them the only way was to wait for five years exile period before resume directorship. Though one way available to directors was to revive the company from ROC and then they could also apply for their directorship.&nbsp;&nbsp;</p>
<p>Ministry of Corporation Affairs [MCA] axed around 2.4 companies in 2017. At that time there was no such way of reviving the companies without paying heavy penalties and directors started looking for the ways in hope of getting their DINs reactivated.</p>
<p>In 2018 MCA came up with a scheme, i.e. <a class="mozbar-highlight-followed-wGA7MhRhQ3WS" href="https://muds.co.in/removal-of-directors-disqualification/"><b>CONDONATION OF DELAY SCHEME 2018</b></a>, it was a chance for the directors to revive their companies and to then apply for removal of their disqualification without paying heavy penalties.</p>
<p>This year again MCA launched another scheme <b>Companies Fresh Start Scheme, 2020 </b>or <b>CFSS</b>, this scheme gives an opportunity to the struck-off companies to get another chance. Let’s understand CFSS in detail,</p>
<p>This scheme came into force on 01-04-2020. Under this scheme company that was at default will be permitted to file documents that it failed to file for three consecutive years.</p>
<h3><b>Benefits of Companies Fresh Start Scheme, 2020</b></h3>
<ul>
<li>
<h4><b>For the Defaulting Companies:</b></h4>
</li>
</ul>
<ul>
<li>No additional fee is required to be paid and only a nominal amount is charged to the companies for miscellaneous expenses.</li>
</ul>
<ul>
<li>Gets immunity against any prosecution or proceedings that arose due to delay in filing of documents.</li>
</ul>
<ul>
<li>Six months&#8217; immunity is given to the company (with an immunity certificate) from 30-09-2020 i.e. the date of closure of CFSS.</li>
</ul>
<ul>
<li>Directors can apply for the removal of their disqualification once the company has revived.</li>
</ul>
<ul>
<li>MCA also provided extended time from 01-04-2020 to 30-09-2020 to directors, to reactivate their DIN, filing DIR-3KYC/DIR-3KYC-Web and the filing fee i.e. Rs 5000 will not apply.</li>
</ul>
<ul>
<li>
<h4><b>For Inactive Companies:</b></h4>
</li>
</ul>
<ul>
<li>Defaulting inactive companies can use the benefit of CFSS 2020 to file the due documents.</li>
</ul>
<ul>
<li>Under section 455 of the Companies Act, 2013 an application for Dormant status can be submitted.</li>
</ul>
<ul>
<li>‘Active non-compliant companies can file e-form ACTIVE in the extended period of 01-04-2020 to 30-09-2020 provided by MCA.</li>
</ul>
<ul>
<li>An application to strike off the name of the company from ROC can be submitted.</li>
</ul>
<h3><b>OTHER IMPORTANT REMEDIAL MEASURES</b></h3>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Many directors failed to take advantage of CODs and that is why they missed the chance they had to revive their company and revive their career as directors by the removal of their disqualification. So now the question that comes to our mind is what are the other remedies by which any director can get their disqualification removed and how can they avoid that speed breaker of their career? So there are 2 options available with the directors and those are as follows:</p>
<ul>
<li>The first option that is available with directors is to consult <b>NATIONAL COMPANIES LAW TRIBUNAL</b> and hopefully get a revival order for the company. Once the company is successfully revived, directors can then apply for removal of their disqualification and for reactivation of their DINs. RoC verifies the order and all other relevant documents, once NCLT has passed the order before reactivating the DINs. But in this case, whether directors’ disqualification can be removed or not depends upon their choice to revive the company.</li>
</ul>
<ul>
<li>Another option available with directors that do not depend upon whether they want to revive the company or not <b>is filing a writ petition</b>. If any director only wants his/her DIN to be reactivated without reviving his/her company, then he/she will have to file a writ petition in the high court. The filing writ petition in the high court is a constitutional right under Article 226 of the constitution.</li>
</ul>
<h3><b>How to file a WRIT PETITION?</b></h3>
<ol>
<li>Any disqualified director can undertake his/her constitutional right of filing a writ petition in high court under Article 226 of the constitution. The high court in which writ petition is to be filed must be decided or chosen according to the area of the company and it comes under which jurisdiction. Here is the information a petitioner needs to provide in the application,</li>
</ol>
<ul>
<li>The dates and events of disqualification are to be listed.</li>
<li>With a notice of motion and urgent application is to be affixed.</li>
<li>Reasonable justification for not filing the statutory documents to ROC on time due to which the company got disqualified needs to be mentioned to court.</li>
<li>Provide the court with the current status of the company and about its director seeking relief.</li>
<li>Companies in which the petitioner plays the role of director should be listed out to the court.</li>
<li>The list of the names of the disqualified directors issued by ROC in the press release or by notice.</li>
<li>Personal information of petitioner such as name, address, and designation of each memo of parties.</li>
<li>The petitioner should attach a prayer cause requesting the court to dismiss the publication issued by ROC under Companies Acts’ Section 164(2).&nbsp;</li>
</ul>
<ol>
<li>High court after hearing the options for <a href="https://muds.co.in/removal-of-directors-disqualification/"><strong>reactivation of DIN</strong></a> of directors, issues orders and the copy of that orders along with other statutory documents needs to be filed by directors to RoC and it then continues with the process of registration.</li>
<li>Petitioner requires to provide documents and pay some penalties and once he/she does that that RoC starts with the process of reactivation of DIN.</li>
</ol>
<p><b>Delhi High Courts’ view on <a href="https://muds.co.in/removal-of-directors-disqualification/">Director Disqualification</a>:</b></p>
<p><b>Case no. W.P. (C) 5490/2020 &amp; CM APPLs 1977-80/2020</b></p>
<p><b>Decided on 02.09.2020</b></p>
<p><b>SANDEEP AGARWAL &amp; ANR vs. UNION OF INDIA</b></p>
<p>In this case, there were 2 directors who were working in 2 companies as directors and on 30th June 2017, one of those companies was struck off from the register of companies.</p>
<p><b>Considerations for Judgement:</b></p>
<p>In this case, there were two companies involved, one was struck off and the other was still active as the petitioners were directors of two companies. So here. availing remedies under the CFS scheme in respect of the active company might get hindered by the disqualification of another company or cancellation of DINs.</p>
<p>The Companies Fresh Start Scheme was launched by MCA while considering the situation of pandemic (COVID-19) out there so it needs to be given full effect. It is common for directors to be part of different companies holding the same position, of the director. In this case, permanent cancellation of DINs and disqualification could render the scheme itself nugatory.</p>
<p><b>JUDGEMENT:</b></p>
<p>In order to enable the directors of an active company i.e. the petitioner herein, to continue the business of the active company considering, it was not at default and also considering the judgement in <b>Mukut Pathak </b>(Supra) the disqualification of the petitioners i.e. directors were set aside and DINs/DSCs of petitioners were directed to be reactivated within three working days.</p>
<h2><b>Why do you need legal help?</b></h2>
<p>As we know one needs to file a writ petition to get disqualification removed and it is not easy for any normal person or a businessman to have knowledge of working of law or courts. To draft a writ petition for filing in the high court one would need legal help. By hiring a representative from a legal firm would make it easy for you to file the writ petition as prescribed under law and he can also represent you in court. If you hire a professional from a reputed firm, he/she will give arguments in court accordingly making it easier to ask for relief from disqualification. Once he has helped you out in getting the relief and the court has passed the order, the expert can help you file the required necessary documents to RoC.</p>
<p>It is very common for people to think, it is not easy to file a writ petition and get the disqualification removed but as you have seen in the earlier case and in many other cases the judgement has been in favor of the directors and disqualification has been removed easily by filing a writ petition and with the help of legal firms or professionals.</p>
<p>On some points court is in general agreement with the petitioners, they are as follows:</p>
<ul>
<li>In the previous act of companies act and the new act some contradictions are found as the companies act of 156 did not have the regulations for private companies and their directors, so imposing new act on them in 2017 is objectionable in the eyes of the high court.</li>
<li>In many cases, directors were not given any notice before the order about the director disqualification which took away their chance of clarifying the reason to the High Court for not being able to submit the financial statements or annual return. This is against the constitutional rights of the petitioners as one should be allowed to show the cause of his/her actions and this is why sometimes orders of RoC are against natural justice.</li>
<li>It has been noticed in some cases that the act is being applied retrospectively for the <a class="mozbar-highlight-followed-wGA7MhRhQ3WS" href="https://muds.co.in/removal-of-directors-disqualification/"><strong>disqualification of directors</strong></a> and has not been entertained by the court</li>
</ul>
<p>So, you can understand how the judiciary gives favorable decisions to directors who provide valid reasons for defaulting. Considering this in mind the directors who are confused related to filing a writ petition might get hope and understand that filing a writ petition with professional help can work in their favor and can help them in getting their director’s disqualification removed.</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/director-disqualification-a-speed-breaker/">Director Disqualification: A Speed Breaker in Directors’ Career</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<title>What Is the Most Effective Solution to Directorship Disqualification by ROC?</title>
		<link>https://muds.co.in/solution-to-directorship-disqualification/</link>
		
		<dc:creator><![CDATA[Shweta Gupta]]></dc:creator>
		<pubDate>Thu, 19 Nov 2020 09:47:45 +0000</pubDate>
				<category><![CDATA[condonation of delay scheme]]></category>
		<category><![CDATA[Removal of Director]]></category>
		<category><![CDATA[Removal of Disqualification of Directors]]></category>
		<category><![CDATA[Direct Listing]]></category>
		<category><![CDATA[Directors Disqualification]]></category>
		<category><![CDATA[disqualification of directors]]></category>
		<category><![CDATA[Disqualifications of Directors]]></category>
		<category><![CDATA[disqualified directors]]></category>
		<category><![CDATA[Disruption Caused]]></category>
		<category><![CDATA[Qualifications of Directors]]></category>
		<category><![CDATA[removal of director]]></category>
		<category><![CDATA[removal of director disqualification]]></category>
		<category><![CDATA[removal of directors disqualification]]></category>
		<category><![CDATA[restoration of DIN]]></category>
		<category><![CDATA[revival of struck off companies]]></category>
		<guid isPermaLink="false">https://muds.co.in/what-is-the-most-effective-solution-to-directorship-disqualification-by-roc/</guid>

					<description><![CDATA[<p>What Is the Most Effective Solution to Directorship Disqualification by ROC? Have you ever contemplated what could be the best way to remove directors&#8217; disqualification? if you are a director, then you must be wondering what you can do to remove your disqualification and what will be the most suitable way?&#160; Of course, it depends [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/solution-to-directorship-disqualification/">What Is the Most Effective Solution to Directorship Disqualification by ROC?</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h2>What Is the Most Effective Solution to Directorship Disqualification by ROC?</h2>
<p><strong><em>Have you ever contemplated what could be the best way to remove directors&#8217; disqualification? if you are a director, then you must be wondering what you can do to remove your disqualification and what will be the most suitable way?&nbsp;</em></strong></p>
<p><strong><em>Of course, it depends on what you want out of your career. If you want to remain a director of the old company, then you might need to revive the company first. if you just want to remove disqualification and continue directorship in other firms then there are other ways. Let us find out what is the most suitable way to remove director disqualification for any director.&nbsp;</em></strong></p>
<p><strong>Rules for Directors’ Disqualification</strong></p>
<p>The <strong>Companies Act of 2013</strong> required companies to furnish documents related to their finances and operations every year. Defaulting on submission of these documents for a continuous period of three years had stricter provisions of punishment compared to the previous version of the Companies Act. The act considered the director of the company responsible for the actions of the company and so, has a policy of strict actions against them in case their company defaults.&nbsp;</p>
<p>The directors of the company are responsible for the smooth operation of the company and therefore they are responsible for any action taken by the company that leads to failure in complying with the directions of the Government. The following points will give information on rules or issues which can lead to <strong><a href="https://muds.co.in/removal-of-directors-disqualification/">directors’ disqualification</a></strong>,</p>
<ul>
<li>Any directors of the company who have been convicted under section 188 by the Court regarding party transactions during the last five years.&nbsp;</li>
<li>The Court also has the authority over the disqualification of directors’ who are undischarged insolvent.&nbsp;</li>
<li>If any court or tribunal has earlier ordered the disqualification of the director.&nbsp;</li>
<li>If the directors fail to inform about their respective shares in any company held by them alone or in collaboration.&nbsp;</li>
<li>If the director is convicted in any offense by the Court and sentenced to imprisonment for more than 6 months.</li>
<li>If the organization fails to redeem any debentures on their due date or fails to pay the interest due.</li>
<li>If the company of the director has not filed its financial statements and annual returns for three years consecutively.&nbsp;</li>
<li>Failure to pay the declared dividend and continuing so for one year or more could also lead to disqualification of the company’s director.&nbsp;</li>
<li>If the company has failed to repay the deposit made to it or pay interest on those deposits.&nbsp;</li>
</ul>
<ul>
<li>If any director has applied for his/her adjudication as an insolvent or if the directors’ application for the same is still pending.&nbsp;</li>
<li>If any Court confirms that the director is not of sound mind.&nbsp;</li>
</ul>
<p><strong>Analysing Court’s View on Writ Petitions through a Case</strong></p>
<p>Let’s understand how filing a Writ Petition can help in the removal of directors’ disqualification and how <strong><em>Karnataka High Court</em></strong> responded to such petition through the case of <strong><em><a href="https://muds.co.in/removal-of-directors-disqualification/">Yashodhara Shroff v. Union of India, WP No. 52911 of 2017.</a></em></strong></p>
<p><em>In this case, the High Court Said, “the directors of the struck-off companies under Section 248 of the Act do not per se get disqualified. But, if the said company has also not complied with Section 164(2)(a) of the Act, then the said company being a defaulting company, the directors of such a company get disqualified.”</em></p>
<p><strong><em>Order of Karnataka High Court:</em></strong></p>
<ul>
<li><em>Where the disqualification of the petitioners is based on any financial year “before 01-04-2014 as well as subsequent thereto” while reckoning the continuous period of three financial years under Section 164(2)(a) of the Act, irrespective of whether the petitioners are directors of public companies or private companies, such a disqualification was considered bad in law, and the </em><strong><em><a href="https://muds.co.in/removal-of-directors-disqualification/">Writ Petitions are allowed in such cases.</a></em></strong></li>
<li><em>For cases whose disqualification occurred under the provisions of Companies Act 1956 for directorship in Public Companies, </em><strong><em>the disqualification stands</em></strong><em>.&nbsp;</em></li>
<li><em>The DINs of directors whose disqualification has been removed by the court should be reactivated.&nbsp;</em></li>
<li><em>If the director is disqualified by considering financial years before 2014 and for private companies only, the </em><strong><em>disqualification will not be removed</em></strong><em>.</em></li>
</ul>
<p>This case paved the way for other directors to file for relief in the High Court if they want to remove disqualification without the revival of their company. Even after the CODS was over, filing of the Writ petition to <strong><a href="https://muds.co.in/removal-of-directors-disqualification/">remove directors’ disqualification</a></strong> is still the proven way to end the exile for directors.&nbsp;</p>
<p><strong>Remedies for Directors’ Disqualification</strong></p>
<p>During the initial few years of introduction of the new Companies Act, it was a common understanding that there was no remedy available for directors who are disqualified by RoC.&nbsp; It was thought that waiting for the five years exile period to end is the only way to resume directorship work. However, there was another option which encompassed the revival of the disqualified company after struck off from RoC. Once the company is revived, its directors could also apply for the revival of their role. There were about 2.4 companies that were axed by the Ministry of Corporate Affairs (MCA) using the Companies Act in 2017. These companies started exploring the options for their revival and the directors hoped to get their DIN reactivated. When the MCA came up with the Condonation of Delay Scheme 2018, the company’s directors hoped to get their company revived without paying heavy penalties and apply for their disqualification removal.</p>
<p>This year, the <a href="https://en.wikipedia.org/wiki/Ministry_of_Corporate_Affairs"><strong>Ministry of Corporate Affairs (MCA)</strong></a> has introduced <a href="https://muds.co.in/removal-of-directors-disqualification/"><strong>Companies Fresh Start Scheme</strong>, <strong>2020</strong></a> or <strong>CFSS </strong>&nbsp;The scheme offers companies struck off from RoC a one time opportunity of applying for condonation of their failure to comply by the norms (delay of filling the various documents, forms, returns, etc. with the Registrar). Let’s understand the benefits offered under this scheme,</p>
<p><strong>Benefits to Avail in Companies Fresh Start Scheme</strong></p>
<p>Revival of any struck-off company with a complete fee waiver on the application and no penalty for non-compliance.</p>
<p>An immunity period of 6 months (with Immunity Certificate) for the company from the date of closure of CFSS, 2020 i.e., 30 September 2020.</p>
<p>The companies will only have to pay the normal fees prescribed by Companies Rules, 2014 to file for the MCA-21 registry.</p>
<p>Once the company is revived, its disqualified directors can apply for removal of disqualification and reactivation of their DINs. This is currently the most preferable method for directors&#8217; disqualification removal for those who also want to restart their old company.&nbsp;</p>
<p><strong>Other Remedies</strong></p>
<p>There were many directors and company owners who could not get advantage from the CODS Scheme to revive their business and thus, their directors also missed the chance at the revival of their careers. The directors’ who failed to use this scheme for the removal of disqualification were left with two options.&nbsp; Either they should apply in the National Companies Law Tribunal and hope to get a company revival order. Once the company was revised, they could apply for the removal of their disqualification and reactivation of DIN. In this case, when the NCLT passed the order of company revival, then RoC used to verify this order and relevant documents of the directors. But this procedure could only be followed if the companies wanted revival, the other option for directors who just wanted to activate their DIN without applying for the revival of their company was to apply for removal of disqualification in the respective High Court through a Writ Petition. The option of writing a Writ Petition to High court is attributed to constitutional rights conferred by Article 226 of the constitution to seek relief.&nbsp;</p>
<p><strong>How to Draft an Impeccable Writ Petition?</strong></p>
<ol>
<li>The disqualified director must undertake to use his constitutional right to file the Writ Petition under Article 226 of the Constitution in the respective High Court. The High Court should be chosen according to the area of jurisdiction of the company. In the application, the petitioner should include the following information,</li>
</ol>
<ul>
<li>List of date and events of disqualification.</li>
<li>Affix an urgent application with a Notice of Motion.&nbsp;</li>
<li>Should give reasonable justification to court for not filing the statutory documents that led to the disqualification of company and removal of its name from RoC.&nbsp;</li>
<li>Inform Court about the current status of the company and its directors seeking relief.&nbsp;</li>
<li>List out the companies in which the petitioner is serving as a director.&nbsp;</li>
<li>File a copy of the impugned Press Release or Notice issued by the RoC that lists out the names of the disqualified directors.&nbsp;</li>
<li>Personal information such as name address and designation of each Memo of parties should be mentioned in the petition.&nbsp;</li>
<li>A prayer cause should be attached to dismiss the publication issued by the RoC under Companies Act’s Section 164 (2).</li>
</ul>
<ol start="2">
<li>After this, the High Court issues orders after hearing the option for reactivation of the DIN of directors. The directors need to file the copy of the order and all other statutory documents to the RoC to continue with the process p0f registration.&nbsp;</li>
<li>Once the defaulter petitioner fulfils all the required documents and completes payment of all the penalties, the RoC will start the process of reactivation.&nbsp;</li>
</ol>
<p><strong>Hire an Experienced Representative&nbsp;</strong></p>
<p>Taking legal help to file a Writ Petition in the High Court is necessary considering the technicalities involved in the process. There are lots of details that should be considered before drafting the petition and only an experienced professional can handle this kind of job. Also, an expert professional from a legal firm will not only help you in the filing of the petition but also help in representing your case in the Court. An advocate from a reputed firm will attend all the hearing of the Court and put arguments effectively to ask for relief from disqualification. Once the Court grants a favourable order, the expert will help you in following the complete procedure mentioned in the order. He will also help you file all the necessary documents in RoC before <strong><a href="https://muds.co.in/removal-of-directors-disqualification/">activation of DIN</a></strong>.&nbsp;</p>
<p>If you are worried about the outcome of filing a Writ petition in high Court or confused whether it will bring positive results, then this should serve as good news to you. There have been many instances across High Courts from all over the country where the director&#8217;s disqualification has been removed after hearing a Writ petition filed by them. The judiciary has granted interim relief to many directors and quashed orders of RoC in some cases.&nbsp;</p>
<p>The Court is in general agreement with the aggrieved petitioners on the following points:</p>
<ul>
<li><strong>Retrospective Application of Companies Act</strong>: In some cases, the Court also found the act being applied retrospectively for disqualification of directors. The Courts deemed this kind of application to be unjustified.&nbsp;</li>
<li><strong>Contradictory Provisions in the Previous and New Act</strong>: The High Court finds it objectionable that the provisions of the Companies Act of 1956 did not have these regulations for the private companies and their directors, and so the new Act should not impose it on them in 2017.</li>
<li><strong>Order of RoC is Against Natural Justice</strong>: In most cases of directors’ disqualification, the aggrieved petitioners have mentioned that they never got any notice regarding their removal from RoC before the orders. Therefore, they never had a chance to clarify to RoC why they were not able to meet all the compliance standards of RoC. This is against the constitutional right of any individual as it doesn’t allow one person to show the cause of their actions and passes the order unilaterally.&nbsp;</li>
</ul>
<p>So, you can safely assume that the judiciary generally gives a favourable decision to directors who give valid reasons for defaulting. This should serve as a ray of hope for disqualified directors who are sceptical of filing <strong><a href="https://muds.co.in/removal-of-directors-disqualification/">writ petition for disqualification removal</a></strong> of their directorship. Just select an experienced legal firm that can represent your case efficiently and hope for a positive outcome.</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/solution-to-directorship-disqualification/">What Is the Most Effective Solution to Directorship Disqualification by ROC?</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<title>Great News! Delhi High Court Removes Director’s Disqualification Considering the CFSS 2020</title>
		<link>https://muds.co.in/delhi-high-court-removes-directors-disqualification/</link>
		
		<dc:creator><![CDATA[Shweta Gupta]]></dc:creator>
		<pubDate>Thu, 19 Nov 2020 05:35:43 +0000</pubDate>
				<category><![CDATA[Others]]></category>
		<category><![CDATA[Removal of Director]]></category>
		<category><![CDATA[Removal of Disqualification of Directors]]></category>
		<category><![CDATA[Direct Listing]]></category>
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		<category><![CDATA[disqualification of directors]]></category>
		<category><![CDATA[Disqualifications of Directors]]></category>
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		<category><![CDATA[Disruption Caused]]></category>
		<category><![CDATA[Qualifications of Directors]]></category>
		<category><![CDATA[removal of director]]></category>
		<category><![CDATA[removal of director disqualification]]></category>
		<category><![CDATA[removal of directors disqualification]]></category>
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					<description><![CDATA[<p>Great News! Delhi High Court Removes Director’s Disqualification Considering the CFSS 2020 The Delhi High Court recently passed an order for the removal of directors’ disqualification of multiple directors. In the hearing of Yatin Wadhwa v Ministry of Corporate Affairs &#38; ANR, The bench of Justice Naveen Chawla considered the role of the Companies Fresh [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/delhi-high-court-removes-directors-disqualification/">Great News! Delhi High Court Removes Director’s Disqualification Considering the CFSS 2020</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h2><em>Great News! Delhi High Court Removes Director’s Disqualification Considering the CFSS 2020</em></h2>
<p><em>The <a href="https://en.wikipedia.org/wiki/Delhi_High_Court">Delhi High Court</a> recently passed an order for the removal of directors’ disqualification of multiple directors. In the hearing of </em><strong><em>Yatin Wadhwa v Ministry of Corporate Affairs &amp; ANR,</em></strong><em> The bench of </em><strong><em>Justice Naveen Chawla</em></strong><em> considered the role of the </em><strong><em>Companies Fresh Start Scheme 2020</em></strong><em> (a scheme allowing the revival of struck-off companies without penalties) and the results of </em><strong><a href="https://muds.co.in/removal-of-directors-disqualification/">Mukut Pathak &amp; Ors. v. Union of India &amp; Others (2019) to order the removal of disqualification</a></strong><em>. The Court observed that the directors must be allowed to avail the benefits of Companies Fresh Start Scheme 2020 (CFSS) and for removal of directors’ disqualification is necessary.</em></p>
<h2><strong>What Did the Court Say in Its Judgement?</strong></h2>
<p>The petitioners, in this case, were directors who faced disqualification by the RoC. After approaching the Court to put stay on their disqualification, they managed to get an order of stay on their disqualification. But after the stay, the RoC approached the court to remove the stay and let the disqualification commence. In a recent hearing via video conferencing, the petitioners argued that <strong><a href="https://muds.co.in/removal-of-directors-disqualification/">they wanted to avail the CFSS 2020</a></strong> but could not do so until the disqualification is in place. Therefore, their disqualification must be removed so they can take advantage of the scheme and give a fresh start to their companies and career. The court used the case of <strong>Mukut Pathak &amp; Ors. v. Union of India &amp; Others (2019)</strong> that had stated that such disqualification under the Companies Amendment Act, 2018 shall not have a retrospective effect and shall only apply from 07th June 2018 onwards. The Court also favored the petitioners on the argument that there is no use of Companies Fresh Start Scheme if the stay on the director&#8217;s disqualification is removed. The court observed that the disqualification should be removed to ensure that the directors are able to avail the benefits of CFSS 2020 and do not get affected by the Retrospective effect.</p>
<p><strong>The Companies Fresh Start Scheme was launched by the Government to give a respite to companies who have defaulted in filing financial documents and statements for three years and hence been struck off from RoC. These companies have been allowed to file their requisite documents and regularize their operations. The directors of such companies could also apply for DIN reactivation once their company is revived by this scheme. The Scheme also envisages non-imposition of penalty or any other charges for belated filing of the documents.</strong></p>
<p>The court clarified that the intent and purpose of the CFSS is to allow a fresh start for defaulted companies and the directors of these companies should be allowed to avail the scheme to ensure its effectiveness. The Court observed that in light of the COIVD-19 Pandemic, the scheme should be given full effect and the disqualification of directors could render the scheme useless.&nbsp;</p>
<p>Finally, the Court relied on the judgment given in <strong><a href="https://muds.co.in/removal-of-directors-disqualification/">Mukut Pathak Case</a></strong> and ordered the Ministry of Corporate Affairs to take the necessary steps to remove the disqualification of petitioners. The hearing also affirmed why taking legal help in the removal of director disqualification is important. The technicalities of such cases can only be handled by a legal professional.&nbsp;</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/delhi-high-court-removes-directors-disqualification/">Great News! Delhi High Court Removes Director’s Disqualification Considering the CFSS 2020</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<title>5 Reasons Why Removal of Directors’ Disqualification is Necessary</title>
		<link>https://muds.co.in/why-removal-of-directors-disqualification-is-necessary/</link>
		
		<dc:creator><![CDATA[Shweta Gupta]]></dc:creator>
		<pubDate>Mon, 02 Nov 2020 11:36:40 +0000</pubDate>
				<category><![CDATA[Ministry of Corporate Affairs]]></category>
		<category><![CDATA[Others]]></category>
		<category><![CDATA[Removal of Director]]></category>
		<category><![CDATA[Removal of Disqualification of Directors]]></category>
		<category><![CDATA[strike off of companies]]></category>
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		<category><![CDATA[company revival]]></category>
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		<category><![CDATA[Directors Disqualification]]></category>
		<category><![CDATA[disqualification of directors]]></category>
		<category><![CDATA[Disqualifications of Directors]]></category>
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		<category><![CDATA[procedure for revival off strike company]]></category>
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		<category><![CDATA[restoration of DIN]]></category>
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					<description><![CDATA[<p>5 Reasons Why Removal of Directors’ Disqualification is Necessary As per the provisions mentioned in the Companies Act 2013, an director of a company can be disqualified for five years from the directorship of his/her company and also banned to join any other organization as a director if his/her current organization fails to submit their [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/why-removal-of-directors-disqualification-is-necessary/">5 Reasons Why Removal of Directors’ Disqualification is Necessary</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h2>5 Reasons Why Removal of Directors’ Disqualification is Necessary</h2>
<p>As per the provisions mentioned in the Companies Act 2013, an director of a company can be disqualified for five years from the directorship of his/her company and also banned to join any other organization as a director if his/her current organization fails to submit their financial statement for a period of three years consecutively. Now the obvious question is whether this disqualification can be removed or not? And if it can be removed what are the ways to do it. To answer all these questions we have explored various aspects of the removal of director disqualification in different sections of this article. By the end of the article, you will be able to understand,</p>
<ul>
<li><strong><em>On what grounds directors are disqualified from the organisation?</em></strong></li>
<li><strong><em>Hyderabad High Court’s perspective on such cases</em></strong></li>
<li><strong><em>What was the impact of these new provisions in the act?</em></strong></li>
<li><strong><em>What are the remedies for disqualified directors?</em></strong></li>
</ul>
<p>We will also understand the process of removal of a director from the perspective of a directors’ disqualification removal case in <strong>Hyderabad High Court</strong>. This will help us understand the general viewpoint od judiciary on cases related to the removal of directors’ disqualification.&nbsp;</p>
<h2><strong>Different Grounds for Directors’ Disqualification</strong></h2>
<p>The <strong><a href="https://muds.co.in/removal-of-directors-disqualification/" target="_blank" rel="noreferrer noopener">Companies Act of 2013</a></strong> required companies to furnish documents related to their finances and operations every year. Defaulting on submission of these documents for a continuous period of three years had stricter provisions of punishment compared to the previous version of Companies Act. The act considered the director of the company responsible for actions of the company and so, has a policy of strict actions against them in case their company defaults.&nbsp;</p>
<p>The directors of the company are responsible for the smooth operation of the company and therefore they are responsible for any action taken by the company that leads to failure in complying with the directions of Government. The following points will give information on rules or issues which can lead to <strong><a href="https://muds.co.in/removal-of-directors-disqualification/" target="_blank" rel="noreferrer noopener">directors’ disqualification</a></strong>,</p>
<ul>
<li>Any directors of the company who has been convicted under section 188 by the Court regarding party transections during last five years.&nbsp;</li>
<li>If the directors fail to inform about their respective shares in any company held by them alone or in collaboration.&nbsp;</li>
<li>If any director has applied for his/her adjudication as an insolvent or if the directors’ application for the same is still pending.&nbsp;</li>
<li>If the director is convicted in any offence by the Court and sentenced to imprisonment for more than 6 months.</li>
<li>If the organisation fails to redeem any debentures on their due date or fails to pay the interest due.</li>
<li>If the company of the director has not filed its financial statements and annual returns for three years consecutively.&nbsp;</li>
<li>If the company has failed to repay the deposit made to it or pay interest on those deposits.&nbsp;</li>
<li>Failure to pay the declared dividend and continuing so for one year or more could also lead to disqualification of the company’s director.&nbsp;</li>
</ul>
<ul>
<li>If any Court confirms that the director is not of sound mind.&nbsp;</li>
<li>The Court also has the authority over the disqualification of directors’ who are undischarged insolvent.&nbsp;</li>
<li>If any court or tribunal has earlier ordered the disqualification of the director.&nbsp;</li>
</ul>
<h2><strong>Analysis of Hyderabad High Court’s Order&nbsp;</strong></h2>
<p>Ever since the <strong><a href="https://muds.co.in/removal-of-directors-disqualification/" target="_blank" rel="noreferrer noopener">norms for director disqualification</a></strong> have come into place the high Court’s throughout India are using flurry of writ petitions being filed for relief. Let’s understand how filing these Petitions have helped the petitioners in their cases through a case study of <strong>M/s. Dr Reddy’s Research Foundation &amp; Ors. Vs. The Ministry of Corporate Affairs &amp; Anr.</strong>&nbsp;</p>
<p><em>“In this case, it was argued by the sides that the action of disqualification was considered due to non-filing of financial statements from April 01, 2014. The three years from 2014 were about to be completed only on 31 March 2017 but the date for filing of annual financial returns for the said years was 30 October 2017. The court thus, director the MCA to <a href="https://muds.co.in/removal-of-directors-disqualification/" target="_blank" rel="noreferrer noopener"><strong>reactivate the DINs</strong> </a>of the directors and allowed them to file their financial statement of their defaulting company from 2011 to 2016.”</em></p>
<p>This case paved the way for other directors to file for relief in the High Court if they want to remove disqualification without the revival of their company. Even after the CODS was over, filing of the Writ petition to <strong><a href="https://muds.co.in/removal-of-directors-disqualification/" target="_blank" rel="noreferrer noopener">remove directo</a><a href="https://muds.co.in/removal-of-directors-disqualification/">rs’ disqualification</a></strong> is still the proven way to end the exile for directors.&nbsp;</p>
<h2><strong>Ways in which Directors Can Seek Relief from Disqualification</strong></h2>
<p>During the initial few years of introduction of the new Companies Act, there were about 2.4 companies that were axed by the Ministry of Corporate Affairs (MCA) using the Companies Act in 2017. These companies started exploring the options for their revival and the directors hoped to get their DIN reactivated. When the MCA came up with the Condonation of Delay Scheme 2018, the company’s directors hoped to get their company revived without paying heavy penalties and apply for their disqualification removal.</p>
<p>It is the responsibility of the company’s director to file all the financial details of the company with the Ministry of Corporate Affairs every year as per the Companies Act. If the directors fail to submit these details for three consecutive years, then the Ministry could go on to remove the company from RoC and deactivate its directors’ DIN for five years. In the year 2018, the Central Government came up with <strong><a href="https://muds.co.in/removal-of-directors-disqualification/" target="_blank" rel="noreferrer noopener">Condonation of Delay Scheme</a> (CODS)</strong> where directors could file the relevant document to get their DINs reactivated. The scheme involved the payment of a moderate fee and condonation of hefty penalties due to defaulting on a payment. Many companies at that time used this scheme for revival and removal of directors’ disqualification. This is how this scheme worked:</p>
<ul>
<li>The disqualified directors were needed to submit all the statutory document with the RoC to get their DIN activated temporarily.</li>
<li>The documents are submitted with the statutory fee prescribed in Section 403 of the Companies Act.&nbsp;</li>
<li>The small fee needed was only 30000 Rs. With an e-CODS form and so saved companies form hefty penalties.&nbsp;</li>
</ul>
<h3><strong>Present Day Remedies for relief</strong></h3>
<p>There were many directors and company owners who could not get advantage from CODS Scheme to revive their business and thus, their directors also missed the chance at the revival of their careers. The directors’ who failed to use this scheme for the removal of disqualification were left with two options.&nbsp;&nbsp;</p>
<ul>
<li>Apply in the National Companies Law Tribunal and hope to get company revival order. Once the company was revived, they could apply for the removal of their disqualification and reactivation of DIN. In this case, when the NCLT passed the order of company revival, then RoC used to verify this order and relevant documents of the directors. This procedure could only be followed if the owners of the companies wanted to revive it.&nbsp;</li>
<li>The other option for directors who just wanted to activate their DIN without applying for the revival of their company was to apply for removal of disqualification in the respective High Court through a Writ Petition. The option of writing a Writ Petition to High court is attributed to constitutional rights conferred by Article 226 of the constitution to seek relief.&nbsp;</li>
</ul>
<h3><strong>How to Create a Writ Petition?</strong></h3>
<ol>
<li>The disqualified director must undertake to use his constitutional right to file the Writ Petition under Article 226 of the Constitution in the respective High Court. The High Court should be chosen according to the area of jurisdiction of the company. In the application, the petitioner should include the following information,</li>
</ol>
<ul>
<li>List of date and events of disqualification.</li>
<li>Affix an urgent application with a Notice of Motion.&nbsp;</li>
<li>Should give reasonable justification to court for not filing the statutory documents that led to the disqualification of company and removal of its name from RoC.&nbsp;</li>
<li>Inform Court about the current status of the company and its directors seeking relief.&nbsp;</li>
<li>List out the companies in which the petitioner is serving as a director.&nbsp;</li>
<li>File a copy of the impugned Press Release or Notice issued by the RoC that lists out the names of the disqualified directors.&nbsp;</li>
<li>Personal information such as name address and designation of each Memo of parties should be mentioned in the petition.&nbsp;</li>
<li>A prayer cause should be attached to dismiss the publication issued by the RoC under Companies Act’s Section 164 (2).</li>
</ul>
<ol start="2">
<li>After this, the High Court issues orders after hearing the option for reactivation of the DIN of directors. The directors need to file the copy of the order and all other statutory documents to the RoC to continue with the process p0f registration.&nbsp;</li>
<li>Once the defaulter petitioner fulfils all the required documents and completes payment of all the penalties, the RoC will start the process of reactivation.&nbsp;</li>
</ol>
<h2><strong>Hire an Experienced Representative&nbsp;</strong></h2>
<p>Taking legal help to file a Writ Petition in the High Court is necessary considering the technicalities involved in the process. There are lots of details that should be considered before drafting the petition and only an experienced professional can handle this kind of job. Also, an expert professional from a legal firm will not only help you in the filing of the petition but also help in representing your case in the Court. An advocate from a reputed firm will attend all the hearing of the Court and put arguments effectively to ask for <strong><a href="https://muds.co.in/removal-of-directors-disqualification/" target="_blank" rel="noreferrer noopener">relief from disqualification</a></strong>. Once the Court grants a favourable order, the expert will help you in following the complete procedure mentioned in the order. He will also help you file all the necessary documents in RoC before <strong><a href="https://muds.co.in/removal-of-directors-disqualification/" target="_blank" rel="noreferrer noopener">activation of DIN</a></strong>.&nbsp;</p>
<p>If you are worried about the outcome of filing a Writ petition in high Court or confused whether it will bring positive results, then this should serve as good news to you. There have been many instances across High Courts from all over the country where director’s disqualification has been removed after hearing on Writ petition filed by them. The judiciary has granted interim relief to many directors and, quashed orders of RoC in some cases.&nbsp;</p>
<p>The Court is in general agreement with the aggrieved petitioners on the following points:</p>
<ul>
<li><strong>Retrospective Application of Companies Act</strong>: In some cases, the Court also found the act being applied retrospectively for <strong><a href="https://muds.co.in/removal-of-directors-disqualification/" target="_blank" rel="noreferrer noopener">disqualification of directors</a></strong>. The Courts deemed this kind of application of act as unjustified.&nbsp;</li>
<li><strong>Contradictory Provisions in the Previous and New Act</strong>: The High Court finds it objectionable that the provisions of the Companies Act of 1956 did not have these regulations for the private companies and their directors, and so the new Act should not impose it on them in 2017.</li>
<li><strong>Order of RoC is Against Natural Justice</strong>: In most cases of directors’ disqualification, the aggrieved petitioners have mentioned that they never got any notice regarding their removal from RoC before the orders. Therefore, they never had a chance to clarify to RoC why they were not able to meet all the compliance standards of RoC. This is against the constitutional right of any individual as it doesn’t allow one person to show the cause of their actions and passes the order unilaterally.&nbsp;</li>
</ul>
<p>So, you can safely assume that the judiciary generally gives a favourable decision to directors who give valid reasons for defaulting. This should serve as a ray of hope for disqualified directors who are sceptical of filing <strong><a href="https://muds.co.in/removal-of-directors-disqualification/" target="_blank" rel="noreferrer noopener">writ petition for disqualification removal</a></strong> of their directorship. Just select an experienced legal firm that can represent your case efficiently and hope for a positive outcome.&nbsp;&nbsp;</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/why-removal-of-directors-disqualification-is-necessary/">5 Reasons Why Removal of Directors’ Disqualification is Necessary</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<title>Can Director Disqualification Due to Non-Filing of Financial Statement be Removed?</title>
		<link>https://muds.co.in/director-disqualification-due-to-non-filing-of-financial-statement-be-removed/</link>
		
		<dc:creator><![CDATA[Shweta Gupta]]></dc:creator>
		<pubDate>Sat, 31 Oct 2020 10:40:38 +0000</pubDate>
				<category><![CDATA[condonation of delay scheme]]></category>
		<category><![CDATA[Others]]></category>
		<category><![CDATA[Removal of Director]]></category>
		<category><![CDATA[companies strike off]]></category>
		<category><![CDATA[company revival]]></category>
		<category><![CDATA[Company Secretary]]></category>
		<category><![CDATA[Condonation of Delay Scheme]]></category>
		<category><![CDATA[Directors Disqualification]]></category>
		<category><![CDATA[disqualification of directors]]></category>
		<category><![CDATA[Disqualifications of Directors]]></category>
		<category><![CDATA[disqualified directors]]></category>
		<category><![CDATA[procedure for revival off strike company]]></category>
		<category><![CDATA[removal of director]]></category>
		<category><![CDATA[removal of director disqualification]]></category>
		<category><![CDATA[removal of directors disqualification]]></category>
		<category><![CDATA[restoration of DIN]]></category>
		<category><![CDATA[revival of struck of companies]]></category>
		<category><![CDATA[revival of struck off companies]]></category>
		<category><![CDATA[surrender of DIN]]></category>
		<guid isPermaLink="false">https://muds.co.in/can-director-disqualification-due-to-non-filing-of-financial-statement-be-removed/</guid>

					<description><![CDATA[<p>As per the provisions mentioned in the Companies Act 2013, an director of a company can be disqualified for five years from the directorship of his/her company and also banned to join any other organization as a director if his/her current organization fails to submit their financial statement for a period of three years consecutively. [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/director-disqualification-due-to-non-filing-of-financial-statement-be-removed/">Can Director Disqualification Due to Non-Filing of Financial Statement be Removed?</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p class="has-text-align-left">As per the provisions mentioned in the <strong><a href="https://www.muds.co.in/removal-of-directors-disqualification/" target="_blank" rel="noreferrer noopener">Companies Act 2013</a></strong>, an director of a company can be disqualified for five years from the directorship of his/her company and also banned to join any other organization as a director if his/her current organization fails to submit their financial statement for a period of three years consecutively. Now the obvious question is whether this disqualification can be removed or not? And if it can be removed what are the ways to do it. To answer all these questions we have explored various aspects of the director disqualification removal in different sections of this article. By the end of the article, you will be able to understand,</p>
<ul>
<li><strong><em>On what grounds directors are disqualified from the organisation?</em></strong></li>
<li><strong><em>Hyderabad High Court’s perspective on such cases</em></strong></li>
<li><strong><em>What was the impact of these new provisions in the act?</em></strong></li>
<li><strong><em>What are the remedies for disqualified directors?</em></strong></li>
</ul>
<p>We will also understand the process of removal of a director from the perspective of a directors’ disqualification removal case in <strong>Hyderabad High Court</strong>. This will help us understand the general viewpoint od judiciary on cases related to the removal of directors’ disqualification.&nbsp;</p>
<h2><strong>Different Grounds for Directors’ Disqualification</strong></h2>
<p>The <strong>Companies Act of 2013</strong> required companies to furnish documents related to their finances and operations every year. Defaulting on submission of these documents for a continuous period of three years had stricter provisions of punishment compared to the previous version of Companies Act. The act considered the director of the company responsible for actions of the company and so, has a policy of strict actions against them in case their company defaults.&nbsp;</p>
<p>The directors of the company are responsible for the smooth operation of the company and therefore they are responsible for any action taken by the company that leads to failure in complying with the directions of Government. The following points will give information on rules or issues which can lead to <strong><a href="https://www.muds.co.in/removal-of-directors-disqualification/" target="_blank" rel="noreferrer noopener">directors’ disqualification</a></strong>,</p>
<ul>
<li>Any directors of the company who has been convicted under section 188 by the Court regarding party transections during last five years.&nbsp;</li>
<li>If the directors fail to inform about their respective shares in any company held by them alone or in collaboration.&nbsp;</li>
<li>If any director has applied for his/her adjudication as an insolvent or if the directors’ application for the same is still pending.&nbsp;</li>
<li>If the director is convicted in any offence by the Court and sentenced to imprisonment for more than 6 months.</li>
<li>If the organisation fails to redeem any debentures on their due date or fails to pay the interest due.</li>
<li>If the company of the director has not filed its financial statements and annual returns for three years consecutively.&nbsp;</li>
<li>If the company has failed to repay the deposit made to it or pay interest on those deposits.&nbsp;</li>
<li>Failure to pay the declared dividend and continuing so for one year or more could also lead to disqualification of the company’s director.&nbsp;</li>
</ul>
<ul>
<li>If any Court confirms that the director is not of sound mind.&nbsp;</li>
<li>The Court also has the authority over the disqualification of directors’ who are undischarged insolvent.&nbsp;</li>
<li>If any court or tribunal has earlier ordered the disqualification of the director.&nbsp;</li>
</ul>
<h2><strong>Analysis of Hyderabad High Court’s Order&nbsp;</strong></h2>
<p>Ever since the norms for <strong><a href="https://www.muds.co.in/removal-of-directors-disqualification/" target="_blank" rel="noreferrer noopener">director disqualification</a></strong> have come into place the high Court’s throughout India are using flurry of writ petitions being filed for relief. Let’s understand how filing these Petitions have helped the petitioners in their cases through a case study of <strong>M/s. Dr Reddy’s Research Foundation &amp; Ors. Vs. The Ministry of Corporate Affairs &amp; Anr.</strong>&nbsp;</p>
<p><em>“In this case, it was argued by the sides that the action of disqualification was considered due to non-filing of financial statements from April 01, 2014. The three years from 2014 were about to be completed only on 31 March 2017 but the date for filing of annual financial returns for the said years was 30 October 2017. The court thus, director the MCA to <strong><a href="https://www.muds.co.in/removal-of-directors-disqualification/" target="_blank" rel="noreferrer noopener">reactivate the DINs</a></strong> of the directors and allowed them to file their financial statement of their defaulting company from 2011 to 2016.”</em></p>
<p>This case paved the way for other directors to file for relief in the High Court if they want removal of director disqualification without the revival of their company. Even after the CODS was over, filing of the Writ petition to remove directors’ disqualification is still the proven way to end the exile for directors.&nbsp;</p>
<h2><strong>Ways in which Directors Can Seek Relief from Disqualification</strong></h2>
<p>During the initial few years of introduction of the new Companies Act, there were about 2.4 companies that were axed by the Ministry of Corporate Affairs (MCA) using the Companies Act in 2017. These companies started exploring the options for their revival and the directors hoped to get their DIN reactivated. When the MCA came up with the <strong><a href="https://www.muds.co.in/removal-of-directors-disqualification/">Condonation of Delay Scheme</a></strong> 2018, the company’s directors hoped to get their company revived without paying heavy penalties and apply for their disqualification removal.</p>
<p>It is the responsibility of the company’s director to file all the financial details of the company with the Ministry of Corporate Affairs every year as per the Companies Act. If the directors fail to submit these details for three consecutive years, then the Ministry could go on to remove the company from RoC and deactivate its directors’ DIN for five years. In the year 2018, the Central Government came up with <strong>Condonation of Delay Scheme (CODS)</strong> where directors could file the relevant document to get their DINs reactivated. The scheme involved the payment of a moderate fee and condonation of hefty penalties due to defaulting on a payment. Many companies at that time used this scheme for revival and removal of director disqualification. This is how this scheme worked:</p>
<ul>
<li>The disqualified directors were needed to submit all the statutory document with the RoC to get their DIN activated temporarily.</li>
<li>The documents are submitted with the statutory fee prescribed in Section 403 of the Companies Act.&nbsp;</li>
<li>The small fee needed was only 30000 Rs. With an e-CODS form and so saved companies form hefty penalties.&nbsp;</li>
</ul>
<h2><strong>Present Day Remedies for relief</strong></h2>
<p>There were many directors and company owners who could not get advantage from CODS Scheme to revive their business and thus, their directors also missed the chance at the revival of their careers. The directors’ who failed to use this scheme for the <strong><a href="https://www.muds.co.in/removal-of-directors-disqualification/" target="_blank" rel="noreferrer noopener">removal of director disqualification</a></strong> were left with two options.&nbsp;&nbsp;</p>
<ul>
<li>Apply in the National Companies Law Tribunal and hope to get company revival order. Once the company was revived, they could apply for the removal of their disqualification and reactivation of DIN. In this case, when the NCLT passed the order of company revival, then RoC used to verify this order and relevant documents of the directors. This procedure could only be followed if the owners of the companies wanted to revive it.&nbsp;</li>
<li>The other option for directors who just wanted to activate their DIN without applying for the revival of their company was to apply for removal of director disqualification in the respective High Court through a Writ Petition. The option of writing a Writ Petition to High court is attributed to constitutional rights conferred by Article 226 of the constitution to seek relief.&nbsp;</li>
</ul>
<h2><strong>How to Create a Writ Petition?</strong></h2>
<ol>
<li>The disqualified director must undertake to use his constitutional right to file the Writ Petition under Article 226 of the Constitution in the respective High Court. The High Court should be chosen according to the area of jurisdiction of the company. In the application, the petitioner should include the following information,</li>
</ol>
<ul>
<li>List of date and events of disqualification.</li>
<li>Affix an urgent application with a Notice of Motion.&nbsp;</li>
<li>Should give reasonable justification to court for not filing the statutory documents that led to the disqualification of company and removal of its name from RoC.&nbsp;</li>
<li>Inform Court about the current status of the company and its directors seeking relief.&nbsp;</li>
<li>List out the companies in which the petitioner is serving as a director.&nbsp;</li>
<li>File a copy of the impugned Press Release or Notice issued by the RoC that lists out the names of the disqualified directors.&nbsp;</li>
<li>Personal information such as name address and designation of each Memo of parties should be mentioned in the petition.&nbsp;</li>
<li>A prayer cause should be attached to dismiss the publication issued by the RoC under Companies Act’s Section 164 (2).</li>
</ul>
<ol start="2">
<li>After this, the High Court issues orders after hearing the option for reactivation of the DIN of directors. The directors need to file the copy of the order and all other statutory documents to the RoC to continue with the process p0f registration.&nbsp;</li>
<li>Once the defaulter petitioner fulfils all the required documents and completes payment of all the penalties, the RoC will start the process of reactivation.&nbsp;</li>
</ol>
<h2><strong>Hire an Experienced Representative&nbsp;</strong>for Removal of Director Disqualification</h2>
<p>Taking legal help to file a Writ Petition in the High Court is necessary considering the technicalities involved in the process. There are lots of details that should be considered before drafting the petition and only an experienced professional can handle this kind of job. Also, an expert professional from a legal firm will not only help you in the filing of the petition but also help in representing your case in the Court. An advocate from a reputed firm will attend all the hearing of the Court and put arguments effectively to ask for relief from disqualification. Once the Court grants a favourable order, the expert will help you in following the complete procedure mentioned in the order. He will also help you file all the necessary documents in RoC before <strong><a href="https://www.muds.co.in/removal-of-directors-disqualification/" target="_blank" rel="noreferrer noopener">activation of DIN</a></strong>.&nbsp;</p>
<p>If you are worried about the outcome of filing a Writ petition in high Court or confused whether it will bring positive results, then this should serve as good news to you. There have been many instances across High Courts from all over the country where director’s disqualification has been removed after hearing on Writ petition filed by them. The judiciary has granted interim relief to many directors and, quashed orders of RoC in some cases.&nbsp;</p>
<p>The Court is in general agreement with the aggrieved petitioners on the following points:</p>
<ul>
<li><strong>Retrospective Application of Companies Act</strong>: In some cases, the Court also found the act being applied retrospectively for disqualification of directors. The Courts deemed this kind of application of act as unjustified.&nbsp;</li>
<li><strong>Contradictory Provisions in the Previous and New Act</strong>: The High Court finds it objectionable that the provisions of the Companies Act of 1956 did not have these regulations for the private companies and their directors, and so the new Act should not impose it on them in 2017.</li>
<li><strong>Order of RoC is Against Natural Justice</strong>: In most cases of directors’ disqualification, the aggrieved petitioners have mentioned that they never got any notice regarding their removal from RoC before the orders. Therefore, they never had a chance to clarify to RoC why they were not able to meet all the compliance standards of RoC. This is against the constitutional right of any individual as it doesn’t allow one person to show the cause of their actions and passes the order unilaterally.&nbsp;</li>
</ul>
<p>So, you can safely assume that the judiciary generally gives a favourable decision to directors who give valid reasons for defaulting. This should serve as a ray of hope for disqualified directors who are sceptical of filing writ petition for disqualification removal of their directorship. Just select an experienced legal firm that can represent your case efficiently and hope for a positive outcome.&nbsp;&nbsp;</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/director-disqualification-due-to-non-filing-of-financial-statement-be-removed/">Can Director Disqualification Due to Non-Filing of Financial Statement be Removed?</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<item>
		<title>Ascertain Your Rights As A Disqualified Director</title>
		<link>https://muds.co.in/ascertain-your-rights-as-a-disqualified-director/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Mon, 25 Mar 2019 04:42:10 +0000</pubDate>
				<category><![CDATA[Removal of Director]]></category>
		<category><![CDATA[Removal of Disqualification of Directors]]></category>
		<category><![CDATA[disqualification of directors]]></category>
		<category><![CDATA[disqualified directors]]></category>
		<category><![CDATA[removal of director]]></category>
		<category><![CDATA[removal of directors disqualification]]></category>
		<guid isPermaLink="false">https://muds.co.in/ascertain-your-rights-as-a-disqualified-director/</guid>

					<description><![CDATA[<p>Are you a disqualified director whose DIN has been deactivated because of non-compliance by your company/companies? Are you in the belief that your career has come to a halt for the next five years? Take heart and get first-hand information about the reason for your disqualification, then find out your rights as to overcome this [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/ascertain-your-rights-as-a-disqualified-director/">Ascertain Your Rights As A Disqualified Director</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>Are you a disqualified director whose DIN has been deactivated because of non-compliance by your company/companies? Are you in the belief that your career has come to a halt for the next five years? Take heart and get first-hand information about the reason for your disqualification, then find out your rights as to overcome this situation.</p>
<p>In 2017, the Ministry of Finance (MCA), in its zest to eradicate wrongful practices in the companies, struck off thousands of them. Maximum disqualifications of directors have occurred due to financial non-compliance of companies under Section 248 of the Companies Act, 2013. In connection to this, the provisions under Section 164 (2) mandated the <a href="https://www.muds.co.in/removal-of-directors-disqualification/">disqualification of directors</a> of such companies.</p>
<p>If you are one of such directors, then stay informed that there are ways and means to remove your disqualification.</p>
<h2><strong>Your Rights; Your Way Out Of This Tangle</strong></h2>
<p>In the initial strike-off days there was a huge hue and cry about MCA’s action, which was viewed as prejudiced or high-handed by many. MCA then took cognizance of the issue and opened a window for redressal known as the Condonation of Delay Scheme (CODS) in 2018. Many companies grabbed this opportunity of filing the overdue documents and becoming active again. The directors of these companies too were able to remove their disqualification from respective ROCs.</p>
<p>Since CODS is closed, then those companies who have not initiated to regain their status, their directors are stuck. So, is there no way out for such aggrieved directors? It’s not so! There are different provisions which can be availed by you, you just need to be aware of them.</p>
<h3><strong>1. The NCLT Route</strong></h3>
<p>Some companies have appealed to the NCLT under Section 252 of the Companies Act, 2013, and the concerned formalities completed. If the Tribunal finds merit in the case and the company is declared ‘active’ once again, then directors DIN shall be restored.</p>
<h3><strong>2. Writ Petition</strong></h3>
<p>At this juncture, the best option for suffering directors like you is to take legal recourse. You have the right to file a Writ Petition in the High Court, which has brought some positive results in similar cases.</p>
<p>You will be happy to note that the Gujarat High Court on December 18, 2018, gave judgment on a bunch of writ petitions and quashed the MCA list of <a href="https://muds.co.in/removal-of-directors-disqualification/">Disqualified Directors.</a></p>
<p>In other similar judgment, the Madras High Court passed an interim judgment staying the ROCs order against the petitioner. If you explore, you will come across judgments of similar nature from HCs of Rajasthan, Delhi, Karnataka, Hyderabad, etc.</p>
<h2><strong>Factors Favoring Directors Stand Legally:</strong></h2>
<h3><strong>1. Against the Principle of Natural Justice</strong></h3>
<p>Most of the petitioners have stated in the petition that the mandatory Notice was never served on them; hence, no chance was provided to them to resolve the issues. This was seen as in opposition to the principle of Natural Justice, which has been declared as a basic structure of the Indian Constitution by the Apex Court.</p>
<h3><strong>2. Retrospective Application of Section 248</strong></h3>
<p>The Companies Act, 2013 came into effect from April 1, 2014, hence the compliance clause which mandates financial documents of all companies for consecutive 3 years, cannot be used retrospectively by the MCA. The Court agrees that an Act which is prospective in nature, cannot be applied retrospectively by the regulators.</p>
<h3><strong>3. Flawed Interpretation</strong></h3>
<p>The most crucial point that favors the directors is that before the Companies Act, 2013 came into effect, the Act of 1956 governed the Companies and under it, there is no such provision as removal of directors for non-compliance.</p>
<blockquote><p><em>&#8220;Take a call now and save your career from being doomed. MUDS has an excellent track record of removing disqualification of more than 300+ directors. With a pan India presence, we can extend guidance and support anywhere.&#8221;</em><br />
<em>&#8211; Shweta Gupta, Founder, and CEO, MUDS</em></p></blockquote>
<p>The post <a rel="nofollow" href="https://muds.co.in/ascertain-your-rights-as-a-disqualified-director/">Ascertain Your Rights As A Disqualified Director</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<title>What Leads to the Removal of Director?</title>
		<link>https://muds.co.in/leads-to-removal-of-director/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Wed, 19 Sep 2018 05:24:20 +0000</pubDate>
				<category><![CDATA[Removal of Director]]></category>
		<category><![CDATA[removal of director]]></category>
		<category><![CDATA[removal of directors disqualification]]></category>
		<guid isPermaLink="false">https://muds.co.in/what-leads-to-the-removal-of-director/</guid>

					<description><![CDATA[<p>Introduction: All of us know that the part of the Directors in any Company and Board is aggregately associated with the everyday undertakings of the Company. Through isolation and designation in accordance with the stature of the Company, the arrangement, the rules in the Articles, the directors in-certainty run the Company subject to the arrangements [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/leads-to-removal-of-director/">What Leads to the Removal of Director?</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h2>Introduction:</h2>
<p>All of us know that the part of the Directors in any Company and Board is aggregately associated with the everyday undertakings of the Company. Through isolation and designation in accordance with the stature of the Company, the arrangement, the rules in the Articles, the directors in-certainty run the Company subject to the arrangements of the Companies Act, 1956 and with the exception of couple of choices which should just be taken by the investors at the Annual General Body Meeting (AGM) or Extraordinary General Body Meeting (EAGM).</p>
<p>As indicated by segment 2(34) of the Companies Act, 2013, a director is a man selected by the leading group of the organization. A Director is a man elected or designated to the governing body of the organization, who with different executives has the duty of deciding and actualizing the organization&#8217;s strategy.</p>
<p>According to the Company Act(2013), investors can opt for the Removal of a Director from the Company before the termination of his residency, with the exception in the case that the subject was an arrangement provided by the Central Govt.</p>
<h2>Removal Of Director:</h2>
<p>According to the Companies Act 2013, removal of a director is conceivable; anyway the <strong>removed director can challenge the expulsion</strong> which might lead to a considerable number of legal issues.</p>
<p>Segment 169 of the Indian Companies Act, 2013 states the methodology for removal of directors:</p>
<ul>
<li>Segment 169 of the Companies Act, 2013 states that the investors can opt for the removal of a director by passing a customary goal in a general session.</li>
</ul>
<ul>
<li>This privilege can&#8217;t be taken away by the MOA, AOA, or any other archive or understanding.</li>
</ul>
<ul>
<li>A specific notice with the objective of removal of a director shall be passed by the predefined no. of individuals from the organization must be passed in any event before 14 days from the concerned gathering.</li>
</ul>
<ul>
<li>A specific notice is required to be given to the organization, either exclusively or as a group by individuals holding at least one percent of aggregate voting force or holding shares on which a total entirety of not in excess of five lakh rupees has been paid.</li>
</ul>
<ul>
<li>The organization should promptly educate its individuals by a notice of goals OR It ought to distribute it in some type of a daily paper having a proper course, in any event a week before the gathering.</li>
</ul>
<ul>
<li>The organization shall offer some sort of intimation to the concerned executive about his expulsion by sending the duplicate of the draft which is supposed to be passed. The removed director will have the privilege to be heard at the gathering.</li>
</ul>
<ul>
<li>The director to be expelled can present his argument against his expulsion from the organization and can likewise request that the organization to brief other members.</li>
</ul>
<ul>
<li>In the event that the composition fails to reach the individuals from the organization since it has been gotten past the point of no return or the organization itself made some default in sending it, then the portrayal must be perused at the yearly broad gathering. The removed director can likewise make an oral presentation.</li>
</ul>
<h3><em><span style="color: #800000;">Want to know how to remove <a href="https://muds.co.in/removal-of-directors-disqualification/">directors disqualification</a>?? &#8211; Check this</span></em></h3>
<h3>On the off chance that the Director does not go to three Board Meetings in succession:</h3>
<p>According to segment 167 of the Companies Act, 2013 if a Director does not go to a <a href="https://en.wikipedia.org/wiki/Board_of_directors">Board Meeting</a> for a year even in the wake of giving appropriate notice, at that point the director needs to vacate his office.</p>
<h3>Conclusion:</h3>
<p>In the present situation, we see that there are a ton of organizations and for each organization, it is important to have a director or a leading body of executive so that it can work legitimately. The director must be by the book and needs to make genuine use of the power vested in him by the board. An executive has to carry the load of every one of his employees, so if a director does anything which is of inconsistency to the conditions explained in Section 166 then he will be obligated and will be subjected to expulsion or being terminated.</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/leads-to-removal-of-director/">What Leads to the Removal of Director?</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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