Redemption Opportunity for Disqualified Directors
In September 2017, Ministry of Corporate Affairs (MCA) identified many directors associated with the companies that had failed to file financial statements or annual returns for a continuous period of three financial years 2013-14, 2014-2015 and 2015-2016 and consequently they became disqualified as per sec 164 (2) of the companies act 2013, to act as Directors. Due to the Directors became disqualified to act as Director, the other companies which were active and running their business were also suffered who have on their board the aforesaid disqualified Directors. Against the move of the MCA, various representations from industry, defaulting companies and their directors seeking opportunity for the defaulting companies to become compliant and normalize operations were made. Certain affected persons have also filed writ petitions before various High Courts seeking relief from the disqualification. In view of this, the Central Govt introduced a Scheme namely "Condonation ...