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Section 164(2) doesn’t mandate cancellation or deactivation of DIN of disqualified directors: Madras HC

October 13, 2020[2020] 120 152 (Madras)

COMPANY LAW : In terms of Rule 11 of Companies (Appointment and Qualifications of Directors) Rules, 2014 (AQD Rules) neither cancellation nor decativation of DIN is provided for upon disqualification under section 164(2)

• Where name of appellants was included in a list of disqualified directors on ground specified in section 164(2)(a) and DIN of appellants/directors was consequently deactivated, it was held that AQD Rules do not empower RoC to deactivate DIN and such deactivation would also be contrary to section 164(2), read with section 167(1) inasmuch as person concerned would continue to be a director of defaulting company and, therefore, publication of list of disqualified directors by RoC and deactivation of DIN of appellants was to be quashed.

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