Explanation
Under Section 164(2) of the Companies Act 2013, a director becomes disqualified if the company in which they are a director has (a) not filed financial statements (AOC-4) or annual returns (MGT-7) for 3 consecutive years, OR (b) failed to repay deposits, debentures, or dividends for more than 1 year. The disqualification applies for 5 years from the date of disqualification. The disqualified director cannot be appointed in any company during this period. The MCA publishes lists of disqualified directors periodically. To avoid this, ensure AOC-4 and MGT-7 are filed every year without exception. Verify on the MCA V3 portal.