Section 164 of CA 2013 : Section 164: Disqualifications For Appointment Of Director

Explanation using Example

Imagine that Mr. John Doe, a prominent businessperson, is being considered for a director position at XYZ Pvt. Ltd. During the vetting process, the company discovers that Mr. Doe was declared insolvent two years ago and his status as an undischarged insolvent is still current. According to Section 164(1)(b) of the Companies Act, 2013, Mr. Doe is ineligible to be appointed as a director of the company due to his undischarged insolvency status. Consequently, XYZ Pvt. Ltd. decides not to proceed with his appointment.