Do you know a director can be disqualified for a default at a different company?

Section 164(2) of the Companies Act disqualifies a person from being reappointed as director of any company for five years if any company they served as director failed to file financial statements or annual returns for three consecutive years. The disqualification is not confined to the defaulting company - it follows the individual across every board they sit on.

The pending Corporate Laws (Amendment) Bill, 2026 would add further grounds - a "fit and proper person" assessment by the board, disqualification for being penalised (not just convicted) under Section 188 for related-party defaults, and a bar on certain auditors, valuers and insolvency professionals sitting on the same company's board. None of this is law yet.