Process to Reactivate or Restore Disqualified Director DIN
- Filing Writ Petition with Respective High Court
- Obtaining High Court Orders
- Submission of High Court Orders with Relevant Compliances to Jurisdictional ROC
- Restoring DIN Active Status from ROC
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MCA had disqualified around 3.09 lakh directors that failed to comply with the regulations stated under section 164(2) and 167(1)(a) of the Act. As a further preventive measure, the authority has blocked DIN of all the disqualified directors. After the action was taken, many aggrieved directors and company came out seeking a solution for the same. As a result of which, the ministry came out with ‘Condonation of Delay Scheme’ wherein it provides a chance to file the necessary documents and safeguard their current position.
How to Become a Director Again after Disqualification
You can become a Director again after disqualification by following one of the following approaches or a combination of approaches. To become a director after a disqualification, the disqualified director may have to appeal to the NCLT and work closely with Officers at MCA for filing returns. Hence, its important to engage an experienced CA or CS or Lawyer immediately after disqualification to resolve the matter.
Appeal the Decision to Disqualify
A Director who has been disqualified can appeal the decision with 30 days of notice to temporarily stay the order. Companies Act 2013 states that an order disqualifying a Director does not take effect within 30 days of conviction resulting in sentence or order. Once, an appeal is initiated, the person would continue to be Director until the expiry of 7 days from the date on which the appeal or petition is disposed off. Hence, any person who has received an order can file the returns and appeal within 30 days to stay the order of director disqualification.
Government of India
Ministry of Corporate Affairs
5th Floor ‘A’ Wing, Shastri Bhawan, New Delhi.
The Regional Directors/Registrars of Companies
Sub: – Addition of names of the newly appointed Directors in the MCA database in the Companies where all the directors stand vacated due to disqualification under section 164(2)(a) r/w 167(1) of the Companies Act, 2013-reg
With reference to the subject cited, I am directed to inform you that reference have been received in the Ministry regarding the matters related to appointment of directors in the Companies in which existing directors stand vacated in terms of Section 167 read with 161(2)(a) of the Act.
- In this regard, it is to be understood that the promoters may appoint new directors u/s167(3) of the Act.In such cases, the issue of role check shall arise.
- The RoCs already have facility to add signatory details from the back end with the approval of RD.
- The RoCs/RD’s hereby directed to approve such applications within one week from the date of receipt of application. This issues with the approval of Competent Authority.
(Sanjay Kumar Gupta)