TMI BlogExclusion of Government companies from the purview of Section 274(1)(g) of the Companies Act, 1956X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section (1) of section 274 of the said Act, namely : Short title, commencement and extent 1. (1) These rules may be called the Companies (Disqualification of Directors under section 274(1)( g ) of the Companies Act, 1956) Rules, 2003. (2) These rules shall come into force from the date of their notification in the Official Gazette. (3) These rules shall apply to all public limited companies registered under the Companies Act, 1956. Definitions 2. In these rules, unless the context otherwise requires, ( a ) disqualifying company is the company in which the default has occurred on account of which a director stands disqualified; ( b ) appointing company is the company in which an individual is seeking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of dividend referred to in sub-clause (B) of clause ( g ) of sub-section (1) of section 274 due to the reason of dividend not being claimed or kept in separate bank account as required under section 205A of Companies Act, 1956 or paid into Investors Education and Protection Fund as required under section 205C of that Act shall not be deemed to be a failure to make payment of dividend. 4. Duty of Statutory Auditor to report on disqualification ( a ) It shall be the duty of statutory auditor of the appointing company as well as disqualifying company, as required under section 227(3)( f ) to report to the members of the company whether any director is disqualified from being appointed as director under clause ( g ) of sub-section ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... distinguish and identify each director without any ambi-guity. Failure to intimate disqualification shall render director as officer in default 6. When a company fails to file the Form DD-B as above within 30 days of the failure that would attract disqualification under section 274(1)( g ), officers of the company listed in section 5 of the Companies Act, 1956 shall be officers in default. 7. ( a ) Upon receipt of the Form DD-B in duplicate under Rule 5, the Registrar of Companies shall immediately register the document and place one copy of it in the document file for public inspection. ( b ) The Registrar of Companies shall forward the other copy to the Central Government. 8. Names of the disqualified directors on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, during which the contravention continues. 12. On the commencement of these rules, all rules, orders or directions in force in relation to any matter for which provision is made in these Rules shall stand repealed, except as respects things done or omitted to be done before such repeal. [F. No.1/8/2002-CL.V] Rajiv Mehrishi, Joint Secretary Form DD-A Companies (Disqualification of Directors under section 274(1)( g ) of the Companies Act, 1956) Rules, 2003 Intimation by Director [Pursuant to section 274(1)( g )] Registration No. of Company........................ Nominal Capital Rs......................... Paid-up Capital Rs......................... Name of Company............................ Addr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 56) Rules, 2003] Registration No. of Company........................ Nominal Capital Rs......................... Paid-up Capital Rs......................... Name of Company............................ Address of its Registered Office........................ To The Registrar of Companies, It is hereby reported under section 274(1)( g ) of Companies Act, 1956, that M/s.........................have failed to ( i ) file the annual accounts and annual returns for the last three financial years, or ( ii ) repay deposits of interest thereon on due date being..................or redeem its debentures on due date being...............or pay dividend declared by the company since................or both. The period of one year has expir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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