Section 164 of the Companies Act 2013 provides for disqualification for appointment as director of a Company, the disqualifications for being appointed as a director of a company, as outlined in the law, aim to maintain high standards of integrity, financial responsibility, and legal compliance among those holding such positions. Here's a summary of the key disqualifications: -

1)      Mental Capacity and Insolvency:

·         Declared of unsound mind by a competent court.

·         An undischarged insolvent or with a pending application for adjudication as insolvent.

2)      Criminal Convictions:

·         Conviction by a court for any offense leading to imprisonment for not less than 6 months, with less than 5 years elapsed since the sentence's expiry.

·         Conviction and imprisonment for a period of 7 years or more.

·         Conviction for dealing with related party transactions under section 188 in the last 5 years.

3)      Non-Compliance with Legal Requirements:

·         Failure to obtain a Director Identification Number (DIN).

·         Non-compliance with provisions of Section 165(1) relating to the number of directorships held.

4)      Financial Misconduct in Company Management:

·         Director of a company that hasn't filed financial statements or annual returns for 3 consecutive financial years.

·         Director of a company that failed to repay deposits, pay interest, redeem debentures, or pay declared dividends for more than 1 year.

5)      Financial Obligations:

·         Not paying calls on shares held in the company for over 6 months, whether held individually or jointly.

These criteria serve as a safeguard to ensure that company directors are capable, responsible, and legally compliant, reflecting a standard of professional ethics and governance in the corporate world.