Disqualification of Director

February 22nd, 2021

WHAT IS DISQUALIFICATION

  • Refer to person who is prohibited from acting as director and being involvement in the company management regardless directly or indirectly

HOW WILL THE DISQUALIFIED DIRECTOR BEEN NOTIFIED

  • ACRA will send notification letter with displayed of disqualified period ( starting date and ending date )
  • Disqualification by bankruptcy will notified by Official Assignee separately.

REASON OF DISQUALIFICATION

The director may be disqualified due to the following reasons:

  • undischarged BANKRUPTCY
  • Has been convicted for an offence involving FRAUD or DISHONESTLY that carrier an imprisonment term of 3 months or more
  • Has been convicted 3 or more ACRA FILING OFFENCE
  • Has 3 or more companies that were STRUCK OFF BY ACRA within 5 year

PERIOD OF DISQUALIFICATION

WILL THE DISQUALIFICATION SEARCHABLE BY THE PUBLIC

YES, Disqualified Director will shown on Bizfile and personal Profile and is accessible by Public

WILL THE RELEVANT COMPANY NOTIFIED ABOUT ITS DISQUALIFIED DIRECTOR  

NO. Relevant disqualified director should update the Company.

Affected Company should take the necessary compliance action such as remove him as company director .

WILL I BEEN NOTIFIED WHEN THE DISQUALIFIED PERIOD IS END

NO. Disqualified period is stated on ACRA register and ACRA notification letter ( except disqualification by Bankruptcy)

CAN DISQUALIFIED DIRECTOR BECOME SHAREHOLDER

YES he still can hold any company share in normal circumstance. But ,  if affected Company’s  constitution required him to sell the share upon cessation of his directorship, then he must do so

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