- he is of unsound mind and stands so declared by a competent court;
- he is an undischarged insolvent;
- he has applied to be adjudicated as an insolvent and his application is pending;
- he has been convicted by a court of any offence, whether involving moral turpitude or otherwise, and sentenced in respect thereof to imprisonment for not less than 6 months and a period of 5 years has not elapsed from the date of expiry of the sentence: Provided that if a person has been convicted of any offense and sentenced in respect thereof to imprisonment for a period of seven years or more, he shall not be eligible to be appointed as a director in any company;
- an order disqualifying him for appointment as a director has been passed by a court or Tribunal and the order is in force;
- he has not paid any calls in respect of any shares of the company held by him, whether alone or jointly with others, and 6 months have elapsed from the last day fixed for the payment of the call;
- he has been convicted of the offense dealing with related party transactions under section 188 at any time during the last preceding 5 years; or
- he has not complied with section 152(3) of the Act.
- for 30 days from the date of conviction or order of disqualification;
- where an appeal or petition is preferred within 30 days as aforesaid against the conviction resulting in sentence or order, until expiry of seven days from the date on which such appeal or petition is disposed off; or
- where any further appeal or petition is preferred against order or sentence within 7 days, until such further appeal or petition is disposed off.
No person who is or has been a director of a company which—
- has not filed financial statements or annual returns for any continuous period of 3 financial years; or
- 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 1 year or more,
Additional provision in Articles of Association regarding disqualification
In addition to the above conditions, a managing or whole-time director or a manager must also comply with all the provisions of the Part I of the Schedule V of the Companies act 2013 to not to be disqualified to be appointed as the managing or whole-time director or manager of the company.