Removal of Director's Disqualification

| Directors Disqualified - Unable to file ROC Compliance


  • Need an Interim Stay on Disqialification
  • Get an order from High Court / NCLT to open ROC window & file pending compliances
  • Appoint New Director(s) and Remove Disqualified Directors from Board
  • Disqualified Directors may again eligibile to appoint as a director after 5 years lock in period.

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Removal of Director's Disqualification - Legal Process

MCA had disqualified around 3.09 lakh directors that failed to comply with the regulations stated under section 164(2) (when a company has not filed financial statements or annual returns, for any three consecutive years, it will result in the disqualification of its directors for a period of five years) and 167(1)(a) (directors to vacate their office in a company upon incurring disqualification as per Section 164 of the Companies Act, 2013) of the Act. As a further preventive measure, the authority has blocked DIN of all the disqualified directors.

The main reason behind issuing Disqualified Director List was also that the Government was of the view that there are a large no. of SHELL Companies which were not complying any law and were also not filing their returns. Hence, all the directors of such shell companies were declared Disqualified. Now, there are three types of companies in which DISQUALIFIED DIRECTORS are exist –

  • Defaulting Companies: having Active Status but Directors Disqualified because of Non Filing of their return
  • Genuine Active Companies having genuine business but having disqualified status: Since the directors of these active companies were also directors of any other struck off or disqualified companies.
  • Strike Off Companies, the directors of which ultimately got disqualified on getting struck off.

Again government took a step by introducing Condonation of Delay Scheme (CODS), 2018 utilizing its powers under section 403, 459 and 460. Under the said scheme DIN of disqualified director temporarily reactivated and given opportunity to file pending compliances with penalty to reactivate companies declared as Strike off. CODS was operational from 1st Jan to 30th april 2018

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Different Circumstance to Comply for Directors Disqualification Removal

When Company was Functional BUT Directors Disqualified
In this case petition to be filed with NCLT
Get the order and File with ROC.
File all Pending Form and Remove Disqualified Directors
Appoint New Directors
When Company was Non-Functional AND Directors Status Become Disqualified ( DIN Deactivated)
In this case petition to be filed with High Court
Get the order and File with ROC.
File all Pending Form and Remove Disqualified Directors
Appoint New Directors

Procedure for Restoration of DIN - Directorship Activation

  • File Petition Draft Petition and File the matter to High Court or NCLT
  • Court Appearance Our Lawyer shall appear before court and get the order
  • Interim Stay Court order is an interim stay on disqualification of director so that you can file your all pending ROC forms upto date and Appoint New Directors and Remove Disqualified Director.
  • File court Order to ROC File the Court order to ROC and seek approval to file the pending compliances. ROC then open window to allow you file your all e-forms
  • File Pending Compliances File all your pending ROC forms.
    Remove Disqualified Director(s) and in place appoint New Director(s)

Our Professional Fee

For High Court Appearance

Drafting of petition and Appear before HC to get the order

Rs. 150000

For High Court Order and ROC FIling

With High court order and then ROC approval & Filings to make 100% compliance

Rs. 170000

Govt. fee, court fee, stamp duty, penalty and other departmental expenses, out of pocket expenses payable extra as per actual and not included in above professional fee
    • YES. There is no direct link of a director disqualification status and shareholding status. So he shall continue to be a shareholder but Not Director until 5 years terms not expired subject to other provisions of the act
    • If for a company any such case arise, either a Promoter or the Ministry of Corporate Affairs (only in absence of a promoter) shall appoint required number of directors till the time directors are not appointed in the general meeting.
    • The individual will have to make an application to Registrar of Companies in form of DIR-10 as per rule 14(5) of the Companies Act asking for removal of his/her name from the list. But such application can be made only after completion of five years.
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