Director Disqualification Guide — Causes, Effects & Revival
Understand director disqualification under Section 164 — what causes it, its effects on the director and company, and how to get disqualification removed.
Director Disqualification Guide — Causes, Effects & Revival
Prepared by TaxClue's CA/CS team. Updated for FY 2026–27.
What is Director Disqualification?
Under Section 164(2) of Companies Act 2013, a director is disqualified if any company in which they are director fails to file annual returns or financial statements for 3 consecutive years.
Automatic Disqualification Triggers
Company not filing AOC-4 or MGT-7 for 3 consecutive years. Company struck off by ROC. Conviction for offences. Undischarged insolvent. Failure to repay public deposits.
Duration
Disqualification under Sec 164(2): 5 years from the date of the default. Director cannot be appointed or continue in any company during this period.
Effect on Director
Cannot be a director or even a partner in an LLP during the disqualification period. Existing directorships in other companies also void.
Effect on Company
Company whose default caused disqualification is also struck off the MCA register. Cannot do business legally.
How to Check DIN Status
Log in to MCA V3 portal → My DIN → Check DIN status. Or check via RUN/SPICe+ application.
Removal / Revival Process
File a writ petition in High Court challenging the disqualification. OR file all pending returns by availing Condonation of Delay Scheme (CODS) if announced. Get company revived first, then DIN reactivated.
Prevention
Always file AOC-4 and MGT-7 on time. Set up reminders. Engage a professional CA/CS for annual compliance. Do not become director in shell companies.
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