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Director Appointment

Virtual Auditor2026-03-20🕒 22 min read
Featured Answer: Director appointment, resignation, and disqualification are governed by Sections 149, 152, 164, 167, and 168 of the Companies Act, 2013. A private limited company needs a minimum of 2 directors (Section 149(1)(a)); a public company needs a minimum of 3. Every appointee must hold a valid DIN (Section 153) and file DIR-3 KYC annually. Appointment is intimated to the ROC via Form DIR-12 within 30 days. A director may resign under Section 168 by notice in writing; the resignation is effective from the date of receipt or the date specified in the notice, whichever is later. Disqualification under Section 164(1) covers conviction, unsound mind, insolvency, and court orders, while Section 164(2) disqualifies all directors of a defaulting company for 5 years. At Virtual Auditor, we handle end-to-end director changes — from DIN application through DIR-12 filing — as part of our Company Secretary services.
Key Definitions:
Director — A person appointed to the board of a company, responsible for its management and affairs (Section 2(34)).
DIN — Director Identification Number, a unique 8-digit identification allotted under Section 153.
Independent Director — A non-executive director satisfying the criteria under Section 149(6), not having any material or pecuniary relationship with the company.
Whole-Time Director (WTD) — A director in full-time employment of the company (Section 2(94)).
Additional Director — A director appointed by the board between two AGMs under Section 161(1), who holds office up to the date of the next AGM.
Alternate Director — A director appointed by the board under Section 161(2) to act for an original director during their absence from India for a period of not less than 3 months.

1. Statutory Framework for Directors in India

The governance of directors under the Companies Act, 2013 is spread across multiple sections. At Virtual Auditor, we advise founders and promoters daily on the interplay between these provisions. Here is the statutory map:

Provision Section Subject
Section 149 Company to have board of directors Minimum/maximum number, woman director, independent director, resident director
Section 150 Manner of selection of independent directors Databank, proficiency test
Section 152 Appointment of directors DIN requirement, first directors, rotational directors
Section 153 Director Identification Number (DIN) Application and allotment
Section 161 Appointment of additional, alternate, nominee directors Board-level appointments between AGMs
Section 164 Disqualifications for appointment of director Grounds, duration, consequences
Section 167 Vacation of office of director Automatic vacation grounds
Section 168 Resignation of director Process, effective date, ROC filing
Section 169 Removal of directors Ordinary resolution, special notice
Section 172 Punishment Penalty for non-compliance with Sections 149–171

2. Minimum and Maximum Number of Directors — Section 149

Section 149(1) of the Companies Act, 2013 prescribes the following mandatory composition:

2.1 Minimum Directors

  • Private Limited Company: Minimum 2 directors — Section 149(1)(a)
  • Public Limited Company: Minimum 3 directors — Section 149(1)(b)
  • One Person Company (OPC): Minimum 1 director — Section 149(1)(a), read with Section 2(62)

2.2 Maximum Directors

Every company (private or public) can have a maximum of 15 directors. A company may appoint more than 15 directors by passing a special resolution — no Central Government approval is needed for this (Section 149(1), second proviso).

2.3 Woman Director

Under Section 149(1), read with Rule 3 of the Companies (Appointment and Qualification of Directors) Rules, 2014, the following companies must have at least one woman director:

  • Every listed company
  • Every public company with paid-up share capital of Rs 100 crore or more
  • Every public company with turnover of Rs 300 crore or more

Most private limited companies and startups are exempt from this requirement. However, we at Virtual Auditor always recommend board diversity as a governance best practice — refer to our Corporate Governance Checklist for Series A Startups.

2.4 Resident Director

Under Section 149(3), every company must have at least one director who has stayed in India for a total period of not less than 182 days during the financial year. This is critical for companies with NRI or foreign promoters. Non-compliance attracts penalties under Section 172.

2.5 Independent Directors

Section 149(4) mandates independent directors for:

  • Every listed public company — minimum one-third of the total number of directors
  • Prescribed classes of public companies under Rule 4 of the Companies (Appointment and Qualification of Directors) Rules, 2014: public companies with paid-up capital of Rs 10 crore or more, turnover of Rs 100 crore or more, or outstanding loans/deposits exceeding Rs 50 crore

Private limited companies are exempt from the independent director requirement. However, if your company is approaching a Series A or later stage, having an independent director signals governance maturity — see our governance checklist.

3. Director Identification Number (DIN) — Sections 153 to 159

3.1 Why DIN is Mandatory

Under Section 152(3), no person shall be appointed as a director of a company unless they have been allotted a DIN under Section 154. The DIN is a lifetime number — once allotted, it remains valid irrespective of whether the person continues as a director.

3.2 How to Apply for DIN

DIN is applied through Form DIR-3 on the MCA portal. The application must be accompanied by:

  • Proof of identity (PAN card for Indian nationals; passport for foreign nationals)
  • Proof of residence (Aadhaar, voter ID, passport, driving licence, or electricity/telephone bill not older than 2 months)
  • Passport-size photograph
  • Verification by a practising Chartered Accountant, Company Secretary, or Cost Accountant

For first-time directors at incorporation, the SPICe+ form (INC-32) allows DIN application along with the incorporation application — up to 3 DINs can be applied through SPICe+.

3.3 DIR-3 KYC — Annual Obligation

Every individual holding a DIN as on 31 March must file DIR-3 KYC by 30 September of the immediately following financial year (extended from the earlier 30 April deadline). If DIR-3 KYC is not filed, the DIN is deactivated, and the director cannot sign or file any form on the MCA portal. Reactivation requires filing DIR-3 KYC with a late fee of Rs 5,000.

Expert Insight — CA V. Viswanathan: We frequently encounter situations where a startup founder’s DIN gets deactivated because DIR-3 KYC was missed. The Rs 5,000 penalty is the least of the problems — the real issue is that the director cannot approve board resolutions or sign forms until reactivation. If your company needs to file an SH-7 or allot shares urgently, a deactivated DIN creates a complete bottleneck. We build DIR-3 KYC into every client’s annual compliance calendar to prevent this.

4. Appointment of Directors — Section 152

4.1 First Directors

Under Section 152(1), the first directors are named in the Articles of Association (AoA). If the AoA is silent, the subscribers to the Memorandum who are individuals are deemed the first directors. In practice, SPICe+ (INC-32) captures the first directors at the time of incorporation.

4.2 Appointment at General Meeting

Under Section 152(2), every director (other than the first directors, additional directors, alternate directors, and nominee directors) must be appointed by the company in a general meeting — either the AGM or an EGM. The procedure is:

  1. Obtain DIN for the proposed director (DIR-3 or through SPICe+)
  2. Obtain written consent from the proposed director in Form DIR-2
  3. Verify that the proposed director is not disqualified under Section 164
  4. Pass a board resolution recommending the appointment (for existing companies)
  5. Pass an ordinary resolution at the general meeting appointing the director
  6. File Form DIR-12 with the ROC within 30 days of the resolution

4.3 Rotational Directors

Section 152(6) provides that unless the AoA provides for retirement of all directors at every AGM, at least two-thirds of the total number of directors of a public company shall be persons whose period of office is liable to determination by retirement of directors by rotation. One-third of such rotational directors retire at every AGM and are eligible for re-appointment. Private companies are exempt from the rotation requirement if their AoA so provides.

4.4 Additional Directors — Section 161(1)

The board may, if authorised by the AoA, appoint additional directors who hold office up to the date of the next AGM or the last date on which the AGM should have been held, whichever is earlier. An additional director cannot be appointed as an alternate director simultaneously.

4.5 Alternate Directors — Section 161(2)

If the AoA authorises it, the board may appoint an alternate director for a director who is absent from India for a period of not less than 3 months. The alternate director vacates office when the original director returns to India. A person acting as alternate director for an independent director must also qualify as an independent director.

4.6 Nominee Directors — Section 161(3)

Subject to the AoA, a nominee director may be appointed by any institution under a loan agreement, or by the Central Government, or by a third party under the provision of the AoA. Nominee directors are common in venture-funded startups where investors negotiate board seats.

5. Step-by-Step: Appointing a New Director in a Private Limited Company

We at Virtual Auditor handle director appointments daily. Here is our standard workflow:

Step Action Form/Document Timeline
1 Obtain DIN for the proposed director (if not already allotted) DIR-3 3–5 working days for approval
2 Ensure DIR-3 KYC is up to date DIR-3 KYC / DIR-3 KYC-WEB Before appointment
3 Obtain consent from the proposed director DIR-2 Before board meeting
4 Check eligibility — no disqualification under Section 164 MCA portal DIN check Before board meeting
5 Hold board meeting — pass resolution for appointment as additional director or recommend to shareholders Board resolution As per board notice requirements
6 Pass ordinary resolution at general meeting (for appointment as regular director) Ordinary Resolution At AGM or EGM
7 File appointment with ROC DIR-12 Within 30 days of appointment
8 Update Register of Directors (Form MBP-1 from the director for disclosure of interest) MBP-1, Register of Directors Immediately after appointment

Need help with a director appointment? Book a free consultation or check our pricing.

6. Disqualification of Directors — Section 164

Section 164 is one of the most consequential provisions in the Companies Act. It operates in two sub-sections, each with distinct triggers, durations, and consequences.

6.1 Section 164(1) — Disqualification on Personal Grounds

A person shall not be eligible for appointment as a director if:

  1. Unsound mind: A court of competent jurisdiction has found them to be of unsound mind, and the finding is in force — Section 164(1)(a)
  2. Undischarged insolvent: They are an undischarged insolvent — Section 164(1)(b)
  3. Adjudged insolvent: They have applied to be adjudicated as an insolvent and the application is pending — Section 164(1)(c)
  4. Conviction: They have been convicted of an offence (whether involving moral turpitude or otherwise) and sentenced to imprisonment for not less than 6 months, and a period of 5 years has not elapsed from the date of expiry of the sentence — Section 164(1)(d)
  5. Court/Tribunal order: An order disqualifying them from appointment has been passed by a court or Tribunal and is in force — Section 164(1)(e)
  6. Non-payment of calls: They have not paid calls on shares held by them (whether alone or jointly) for 6 months from the last day fixed for payment — Section 164(1)(f)
  7. Conviction under Section 188: Convicted of related-party transaction offences under Section 188 at any time during the last 5 years — Section 164(1)(g)

6.2 Section 164(2) — Disqualification Due to Company Default

This is the provision that causes maximum anxiety among directors. Under Section 164(2):

Section 164(2) Trigger: If a company has —
(a) not filed financial statements or annual returns for any continuous period of 3 financial years; or
(b) failed to repay the deposits accepted or pay interest thereon, or redeem any debentures on the due date, or pay dividends declared and such failure continues for 1 year or more —

Then every person who is a director of such company at the time of the default shall not be eligible to be re-appointed as a director of that company or be appointed as a director in any other company for a period of 5 years from the date on which the said company fails to do so.

The consequences of Section 164(2) are severe:

  • The director is disqualified not just from the defaulting company but from all companies
  • The disqualification period is 5 years
  • MCA has been running the CONDONATION OF DELAY SCHEME (CODS) periodically, but there is no permanent relief mechanism
  • The DIN status shows as “Disqualified” on the MCA portal, which is publicly searchable
Expert Insight — CA V. Viswanathan (IBBI/RV/03/2019/12333): We see Section 164(2) disqualification hit founders of dormant companies the hardest. You incorporated a company in 2018, never traded, forgot about annual filings — and by 2021, all your directors are disqualified. The fix is to file the pending returns, pay the late fees, and apply to the NCLT for removal of disqualification. We have successfully handled over 40 such restoration matters. The key lesson: if you are a director in multiple companies, track compliance across ALL of them. Use our Company Secretary retainer to ensure no filing is missed.

6.3 How to Check if a Person is Disqualified

The MCA portal publishes a list of disqualified directors periodically. You can also check DIN status by searching the DIN or name on the MCA V3 portal under “Check Company/LLP Name” or “Check Director DIN Status.” We always verify DIN status before processing any appointment at Virtual Auditor.

7. Vacation of Office — Section 167

Section 167 deals with automatic vacation of office — situations where a director ceases to hold office by operation of law, without any resignation or removal. A director’s office is vacated if:

  1. They incur any disqualification under Section 164 — Section 167(1)(a)
  2. They absent themselves from all board meetings held during a period of 12 months with or without leave of absence — Section 167(1)(b)
  3. They act in contravention of Section 184 (disclosure of interest) — Section 167(1)(c)
  4. They fail to disclose interest in contracts under Section 184 — Section 167(1)(c)
  5. They become disqualified by order of court under Section 203 — Section 167(1)(d)
  6. They are convicted and sentenced to imprisonment for not less than 6 months — Section 167(1)(e) (provided 30 days from date of sentence have elapsed without appeal)
  7. They are removed in pursuance of Section 169 — Section 167(1)(f)
  8. They have not complied with the provisions of Section 152(3) — allotment of DIN — Section 167(1)(g)

When vacation occurs, the director ceases to hold office from the date the disqualifying event occurs. The company must file DIR-12 within 30 days to intimate the ROC of the cessation.

7.1 12-Month Absence Rule — Section 167(1)(b)

This provision is particularly relevant for NRI directors and investor-nominees who may not actively participate in board meetings. The 12-month period is calculated as a rolling period, not a calendar year. If even one meeting is attended during any consecutive 12-month window, the ground for vacation does not arise.

We strongly advise our clients with NRI directors to ensure board meetings are scheduled with flexibility to accommodate time zone differences and enable participation via video conferencing (which is permitted for board meetings under Section 173(2), except for matters specifically excluded).

8. Resignation of Director — Section 168

8.1 The Statutory Process

Section 168 provides a clear framework for director resignation:

  1. The director submits a notice in writing to the company
  2. The board takes note of the resignation at the next board meeting
  3. The company files Form DIR-12 with the ROC within 30 days from the date of receipt of the notice
  4. The resignation takes effect from the date of receipt or the date specified in the notice, whichever is later

8.2 Director’s Independent Filing — DIR-11

Under the proviso to Section 168(1), the resigning director may also forward a copy of their resignation along with reasons in Form DIR-11 to the ROC within 30 days. This is the director’s safeguard — in case the company delays or refuses to file DIR-12, the director can place on record their resignation independently.

Expert Insight — CA V. Viswanathan: Always file DIR-11 independently. We have seen too many cases where a director resigns verbally or by email, the company does not file DIR-12, and 2 years later the director discovers they are still listed on the MCA portal — and are now disqualified under Section 164(2) because the company defaulted on annual filings. The DIR-11 filing is your insurance. It costs nothing and takes 15 minutes. We include DIR-11 filing as standard practice in every resignation engagement.

8.3 Resignation of All Directors — Section 168(2)

Section 168(2) provides that the resignation of a director shall not take effect if, as a result, the number of directors falls below the minimum required under Section 149. In such cases, the resignation is effective only when a new director is appointed. However, the NCLT in several orders has held that the resignation is effective from the date specified, and the company is merely in violation of the minimum director requirement — the director is not obligated to continue.

8.4 Liability Post-Resignation

Under the second proviso to Section 168(1), the director remains liable for offences that occurred during their tenure. Resignation does not absolve a director from acts committed while they were in office. This is particularly relevant for defaults under:

  • Section 134 — financial statements
  • Section 135 — CSR compliance
  • Section 185 — loans to directors
  • Section 186 — loans and investments
  • Section 188 — related party transactions

9. Removal of Directors — Section 169

While resignation is voluntary, Section 169 provides for involuntary removal of a director by the shareholders:

  1. A company may, by ordinary resolution, remove a director (other than a director appointed by the Tribunal under Section 242) before the expiry of their term
  2. A special notice of 14 days under Section 115 is required for such a resolution
  3. On receipt of the special notice, the company must send a copy to the concerned director
  4. The concerned director has the right to be heard at the meeting
  5. The director may make written representations which the company must circulate to members

An independent director under Section 149(6) cannot be removed by an ordinary resolution under Section 169 — they can only be removed by passing a special resolution after following the special notice procedure.

10. Key Forms for Director Changes

Form Purpose Filing Deadline Government Fee
DIR-3 Application for DIN Before appointment Rs 500
DIR-3 KYC Annual KYC update for DIN holders 30 September annually Nil (Rs 5,000 if late)
DIR-2 Consent to act as director Before appointment N/A (not filed with ROC)
DIR-12 Intimation of appointment/cessation/change of director Within 30 days of change Rs 200–Rs 600 (based on share capital)
DIR-11 Director’s independent notice of resignation to ROC Within 30 days of resignation Nil
MBP-1 Disclosure of interest by director At first board meeting of each financial year or upon any change N/A (internal document)
DIR-8 Intimation by director regarding non-disqualification Before appointment N/A (internal document)

11. Board Resolution Templates for Director Changes

We provide ready-to-use board resolution templates as part of our Company Secretary services. For detailed templates, refer to our Board Resolution Templates for Startup India guide.

11.1 Board Resolution for Appointment of Additional Director

The resolution must cover:

  • Name, DIN, date of birth, and address of the proposed director
  • Confirmation that the proposed director is not disqualified under Section 164
  • Confirmation that DIR-2 (consent) has been received
  • Reference to the Articles of Association authorising the appointment
  • Statement that the director holds office up to the next AGM under Section 161(1)
  • Authorisation to the Company Secretary / director to file DIR-12

11.2 Board Resolution for Taking Note of Resignation

The resolution must record:

  • Date of receipt of the resignation notice
  • Effective date of resignation (date of receipt or date specified, whichever is later)
  • Authorisation to file DIR-12 with the ROC within 30 days
  • Any observations on the director’s conduct or reasons for resignation (if relevant)

12. Penalties and Consequences

12.1 Penalty Under Section 172

Non-compliance with Sections 149 to 171 attracts penalty under Section 172:

  • Company: Fine of not less than Rs 50,000 which may extend to Rs 5,00,000
  • Every officer in default: Fine of not less than Rs 50,000 which may extend to Rs 5,00,000

12.2 Additional Fees for Late Filing on MCA Portal

Late filing of DIR-12 attracts additional fees calculated as follows on the MCA V3 portal:

  • Up to 30 days delay: 2 times the normal filing fee
  • 31 to 60 days: 4 times the normal filing fee
  • 61 to 90 days: 6 times the normal filing fee
  • 91 days to 180 days: 10 times the normal filing fee
  • Beyond 180 days: 12 times the normal filing fee

12.3 Consequences of Acting While Disqualified

Under Section 167(2), if a person whose office has been vacated under Section 167(1) continues to act as a director, they shall be punishable with imprisonment up to 1 year or fine of Rs 1 lakh to Rs 5 lakh, or both.

13. Special Situations and Practical Issues

13.1 Director Appointed on Multiple Boards

Under Section 165, a person cannot hold directorship in more than 20 companies at the same time, of which not more than 10 shall be public companies. Private companies, Section 8 companies, and dormant companies are counted within the overall limit of 20 but are excluded from the sub-limit of 10 public companies.

13.2 Foreign National as Director

A foreign national can be appointed as a director. The procedure is the same, but the DIN application (DIR-3) must attach a passport in lieu of PAN and a foreign address proof. No FEMA approval is needed merely for directorship. However, if the foreign director is to be paid remuneration, FEMA implications on the mode of payment arise. We handle cross-border directorship matters regularly — see our FEMA compliance services.

13.3 Small Company / Startup Exemptions

Under the Companies (Specification of Definitions Details) Order, 2024, small companies (paid-up capital not exceeding Rs 4 crore and turnover not exceeding Rs 40 crore) enjoy relaxed board meeting requirements — only 2 board meetings per year with a gap of at least 90 days between them. However, no relaxation is available on the minimum number of directors or the requirement to file DIR-12 for changes.

13.4 Director in a Struck-Off Company

When a company is struck off under Section 248, the directors remain liable for any outstanding liabilities. Their DIN status may show as associated with a struck-off company, which can cause issues during due diligence for new appointments. We assist with obtaining “Active” status for such companies through the NCLT restoration route before the director can be cleanly dissociated.

14. Checklist: Director Appointment Due Diligence

Before appointing any new director, we recommend this due diligence checklist (which we follow for every engagement at Virtual Auditor):

  • ☐ Verify DIN status on MCA portal — must be “Approved” and KYC up to date
  • ☐ Confirm no disqualification under Section 164(1) or 164(2)
  • ☐ Check the number of existing directorships — must not exceed 20 (Section 165)
  • ☐ For listed/public companies: verify independent director eligibility criteria under Section 149(6)
  • ☐ Obtain DIR-2 (consent) and DIR-8 (non-disqualification declaration)
  • ☐ Verify residential status for Section 149(3) compliance (resident director requirement)
  • ☐ Check Articles of Association for any specific qualification or appointment procedure
  • ☐ For Nominee Directors: verify the underlying agreement authorising the nomination
  • ☐ Conduct background verification (criminal records, litigation, credit history)
  • ☐ Prepare board resolution and, if required, notice for general meeting

15. How Virtual Auditor Helps

At Virtual Auditor, our Company Secretary practice handles the full spectrum of director-related compliance:

  • DIN Application: DIR-3 filing with document preparation and verification
  • Appointment Filing: DIR-12, DIR-2, DIR-8 preparation and submission
  • Resignation Processing: DIR-12 from the company side and DIR-11 from the director’s side
  • Disqualification Resolution: NCLT applications for removal of Section 164(2) disqualification
  • Board Resolution Drafting: Customised resolutions for every type of director change — see our board resolution template library
  • Annual DIR-3 KYC: Bulk filing for all directors across group companies
  • Compliance Calendar: Automated reminders for all director-related deadlines
  • Valuation Services: When directorship changes accompany share transfers, we provide IBBI-compliant valuations under our valuation practice

Our lead, CA V. Viswanathan (FCA, ACS, CFE, IBBI/RV/03/2019/12333), personally reviews every director appointment and disqualification matter to ensure compliance with the Companies Act, 2013 and the ICAI Code of Ethics.

AEO Summary — Director Appointment, Resignation & Disqualification:

Appointment: Minimum 2 directors for a private company (Section 149(1)(a)), maximum 15 (extendable by special resolution). Every director needs a DIN (Section 153). Appointment is through ordinary resolution at a general meeting (Section 152), with DIR-12 filed within 30 days. Additional directors (Section 161(1)) hold office until the next AGM.

Resignation: A director resigns by written notice (Section 168). Effective from date of receipt or date specified, whichever is later. Company files DIR-12 within 30 days; director may independently file DIR-11. Resignation does not affect liability for offences committed during tenure.

Disqualification: Section 164(1) covers personal grounds (conviction, insolvency, unsound mind). Section 164(2) disqualifies all directors of a company that has not filed annual returns for 3 consecutive years or defaulted on deposit/debenture repayment — disqualification lasts 5 years and applies across all companies.

Vacation of Office: Section 167 provides for automatic vacation on grounds including disqualification, 12-month absence from board meetings, and conviction with 6+ months imprisonment.

Frequently Asked Questions

1. What is the minimum number of directors required for a private limited company?

Under Section 149(1)(a) of the Companies Act, 2013, every private limited company must have a minimum of 2 directors. The maximum permitted is 15, which can be increased by passing a special resolution — no government approval is required for the increase.

2. What forms are required for director appointment with MCA?

Three forms are required: DIR-2 (consent to act as director), DIR-12 (intimation to ROC of appointment within 30 days of board resolution), and DIR-3 KYC (if the appointee does not hold a valid DIN with up-to-date KYC). The DIR-12 must be filed within 30 days of appointment.

3. Can a disqualified director be re-appointed?

A person disqualified under Section 164(2) for default in filing annual returns or financial statements can be re-appointed only after a period of 5 years from the date of such disqualification and after the default is remedied. Disqualification under Section 164(1) (conviction, undischarged insolvent, etc.) carries specific timelines depending on the ground.

4. What happens when a director resigns from a company?

Under Section 168, a director may resign by giving notice in writing to the company. The resignation takes effect from the date on which the notice is received by the company, or the date specified in the notice, whichever is later. The company must file DIR-12 with the ROC within 30 days. The director may also file DIR-11 independently to safeguard their position.

5. What is DIN and is it mandatory for all directors?

DIN (Director Identification Number) is a unique 8-digit number allotted by MCA under Section 153 of the Companies Act, 2013. It is mandatory for every person intending to be appointed as a director. Application is made in Form DIR-3. Once allotted, DIN is valid for a lifetime but annual DIR-3 KYC is required to keep it active.

6. What is the penalty for not filing DIR-12 for director changes?

Under Section 172 of the Companies Act, 2013, the company and every officer in default shall be punishable with a fine which shall not be less than Rs 50,000 but which may extend to Rs 5,00,000. Additionally, late filing attracts additional fees on the MCA portal calculated on a per-day basis.

7. How does Section 164(2) disqualification work?

If a company has not filed its annual returns for 3 consecutive financial years or has not repaid deposits/debentures/interest on the due date, all directors of such company on the date of default are disqualified under Section 164(2). This disqualification lasts for 5 years from the date on which the company fails to file or repay. The disqualified director cannot be appointed as a director in any company.

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