What are the grounds for director disqualification under Section 164 of the Companies Act?

Question

I recently learned my DIN was deactivated because a company I was associated with defaulted on filings. Am I disqualified as a director? What I am unsure about is the procedure — where the application goes, what it costs, and how long director disqualification section 164 matters usually take. A plain explanation of the steps, in order, would help more than a general answer.

MyVakeel Legal Desk · Accepted Answer

The law that applies to director disqualification section 164 here is Companies Act 2013, Section 164, Companies Act 2013, Section 167 and Companies Act 2013, Section 248. The detail below matters, because Companies Act 2013, Section 164 draws the line differently depending on what your documents show.

Section 164(1) disqualifies a person from being appointed director on grounds such as unsound mind, insolvency, conviction for an offence with imprisonment of a specified duration, or failure to pay calls on shares.

Section 164(2) disqualifies a director of a company that has failed to file financial statements or annual returns for three continuous financial years, or has failed to repay deposits or debentures on time.

Section 167 provides that the office of a director becomes vacant if the disqualification under Section 164 attaches, requiring the director to vacate office in all companies where they serve.

Disqualification under Section 164(2) typically runs for five years from the date of default and prevents reappointment or fresh appointment as director during that period.

Companies struck off under Section 248 for non-filing often trigger automatic disqualification of their directors, who can seek relief through condonation schemes or Tribunal appeals in appropriate cases.

In practice, in this order: 1) Check the director's DIN status and disqualification list on the MCA portal; 2) Review pending annual filings across all associated companies immediately; 3) File overdue AOC-4 and MGT-7 returns to cure the default where the company is active; 4) Approach the NCLT or use available condonation schemes if disqualification has already attached.

Timing matters here: Companies Act 2013, Section 164 works on limitation periods, so a director disqualification section 164 claim that is right on the merits can still fail if it is brought late. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in corporate law.