Under sub-section 164(2) (a), a person who has been a director with a company that has not filed financial statements or annual returns for three consecutive financial years will face disqualification.

2) in case of disqualification incurred by any Director under Section 164 (2) of the Act will automatically vacate the office of the director under Section 167(1)(a) of the Act in all the companies in which at that point of time such person is a director

3) he cannot continue to be director of company .

Contravention on continue as director even after attainment of disqualification (Sec 167)

He shall be punishable with the imprisonment for a term upto 1 year or with fine of Rs. 1 lac to Rs. 5 Lacs or with both

4) The  Director may approach to High Court to grant relief under section 463 of the Companies Act, 2013

Dear Client,

No, and not eligible for reappointment in any company for 5 years.

Hi,

After disqualification, the same person can't continue as director of the same company.

No disqualified director cannot continue as director you have to.file a petition before NCLT.to set aside the disqualification of the director.

After disqualification same person cannot continue as a director .

In Sec 167

“in subsection (1) of clause (a) , the following proviso shall be inserted , namely :-

“Provided that where he incurs disqualification under subsection (2) of section 164, the office of the director shall become vacant in all the companies, other than the company  which is in default under that subsection”

However MCA in the press release dated 12.09.2017 advised to disqualified director to vacate the office as per sec 167.

Dear Sir,

Normally such disqualified director cannot be continue as director of the company.  It is not known for what reason the director was disqualified.  Depending upon severity of such disqualification he may approach the High Court and get such order quashed and then continue as director.

As per Section 167(1)(a) of the Companies Act, 2013, it has been mentioned that “The office of a director shall become vacant in case — he incurs any disqualification specified in Section 164”.

But section 164 is applicable at the time of appointment/reappointment of a person as a director of any company, section 167 is applicable when a person is already a director. Section 164 prescribes disqualifications which come into play at the time of appointment of a person as a director in any company. As against that section 167 applies only when a person attracts any of the grounds in relation to a particular company. This is clear from the words ‘A person shall not be eligible for appointment as a director of a company’ in section 164(1) and the words ‘The office of a director shall become vacant’ in section 167(1). So, the words ‘a person’ and the words ‘a director’ used in the two sections.

1. IF the Director continues to function as a Director, THEN it would amount to misrepresentation and become liable for prosecution. The other director would also become equally liable, for failing to follow ROC's directions.

Keep Smiling .... Hemant Agarwal

No, the disqualified director cannot continue as a director unless his disqualification is revoked by the RoC on any appeal.