Can a disqualification be removed?

Disqualification of directors under Section 164

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Section 164 sets out when a person cannot be appointed or continue as a director. The rule that catches most founders is Section 164(2): if a company does not file its financial statements or annual returns for three continuous years, all its directors are disqualified for five years.

Personal disqualifications (Section 164(1))

Unsound mind, as declared by a court
Undischarged insolvent, or applied to be adjudicated insolvent
Convicted of an offence with imprisonment of six months or more (seven years or more for permanent disqualification)
Disqualified by a court or Tribunal order
Not paid calls on shares for six months
Convicted of related-party transaction offences in the last five years
Not obtained a DIN

Company-default disqualification (Section 164(2))

If a company fails to file financial statements or annual returns for any three continuous financial years, or fails to repay deposits or pay dividends for a year, every director becomes disqualified for five years from reappointment in that company and from being appointed in any other company.

Under Section 167, the director also vacates office in all other companies, except the defaulting one.

Frequently asked questions

Relief can be sought through condonation schemes, completing filings, or appeal to the Tribunal or High Court, depending on the case.

This guide is general information, not legal advice. Government fees and procedures change; confirm current figures before you file.