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2020 (8) TMI 432 - HC - Companies LawDisqualification of Director - newly appointed Director was not allowed to operate the bank account since she was declared disqualified along with other Directors due to non-filing of audited financials of the company with the Register of Companies - Section 164(2) of the Companies Act - HELD THAT:- Section 167(1)(a) of Companies Act makes it clear that if a director of a company who has failed to file financial statements incurs disqualification for appointment of a director in another company or re-appointment as a director as the case may be would immediately forfeit his right to continue as director in all the companies which may have filed the financial statements of annual returns as required under the Companies Act. The inclusion of the said proviso has an object as it is found that directors in several companies act in a perfunctory manner and with a view to evade the provisions of the Companies Act remain as director of different companies and continue to remain in the Board of such companies by virtue of the fact that no default had occurred in the other company. It is significant to mention here that director of Regatta Techno-Com System Private Limited and S & H Manufacturing and Trading Private Limited are common and keeping in view the object of the said amendment which fastens the liability on the directors and in clear terms specify the disqualification that a director would earn irrespective of the fact that he may not be the director of the company which has not committed any default, there are no reason in the communication made by the State Bank of India. Petition dismissed.
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