Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Discussions Forum
Home Forum Corporate Laws / SEBI / LLP This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

Can a Disqualified Director become Subscriber to the Memorandum in a Company to be incorporated, Corporate Laws / SEBI / LLP

Issue Id: - 116688
Dated: 3-9-2020
By:- THYAGARAJAN KALYANASUNDARAM

Can a Disqualified Director become Subscriber to the Memorandum in a Company to be incorporated


  • Contents

Dear All,

Please clarify the following.

Whether a Disqualified Director can become a Subscriber to the Memorandum in a Company to be incorporated? On reading the act I find no restrictions on the same. However, when I practically tried to fill the spice+ form, I'm not able to Associate the DSC of the person who was disqualified as a director in some other company, for signing the MOA as a subscriber to the memorandum.

Can someone guide me on the Act and practical issues faced while signing the MOA.

Thank you in advance for the help.

Posts / Replies

Showing Replies 1 to 1 of 1 Records

Page: 1


1 Dated: 28-9-2020
By:- TANAY GHILDIYAL

Ofcourse company's ownership is permitted, but if they were to act in one of the following ways it would become extremely tough to avoid a director disqualification breach.

as de facto director (or director “in fact”) who acts as a director, but who hasn’t been formally appointed or recorded as director in the company’s records or at Companies House

as a shadow director who isn’t openly acting as a director, but is instructing another company director in the performance of his or her duties and the direction of the company

as a corporate director who is appointed to sit on the Board

as a non-executive directors who in terms of management and direction of the company and responsibilities, such as the financial affairs of the company, is no different to a formally appointed and registered director

So yes he can be the Subscriber but watch for his further roles to aviod litigation


Page: 1

Old Query - New Comments are closed.

Quick Updates:Latest Updates