Section 164(2) provides that “No person who is or has been a director of a company which—

a) has not filed financial statements or annual returns for any continuous period of three financial years; or

b) has failed to repay the deposits accepted by it or pay interest thereon or to redeem any debentures on the due date or pay interest due thereon or pay any dividend declared and such failure to pay or redeem continues for one year or more, shall be eligible to be re-appointed as a director of that company or appointed in other company for a period of five years from the date on which the said company fails to do so.

Provided that where a person is appointed as a director of a company which is in default of clause (a) or clause (b), he shall not incur the disqualification for a period of six months from the date of his appointment”

(default of non-filing of financial statement or annual return for continuous period of three financial year i.e. 2015-16, 2016-17 and 2017-18).

In this regard all the defaulting directors are hereby cautioned to find the pending statutory returns and do necessary compliance as per provisions of law otherwise action will be initiated Under Section 164 of the Companies Act, 2013 and Rules made thereunder. The DINs of such directors are not allowed to be used for filing any e-forms on MCA21 portal.

Best Regards,

Team BKA (+91-11-43632828)

Source: http://mca.gov.in/Ministry/pdf/Upload_31102019.pdf