Importance of ROC filings for avoiding disqualification of directors
Introduction
Many directors assume disqualification happens only in fraud or serious cases.
In reality, simple ROC non-compliance is the most common reason for director disqualification.
Missing routine ROC filings for a few years can legally bar a director from holding office in any company.
This blog explains how ROC filings protect directors and why ignoring them is risky.
What Is Director Disqualification
Director disqualification means a person is legally prohibited from acting as a director under the Companies Act, 2013.
Disqualification affects:
Existing directorships
Future appointments
Signing authority
Professional credibility
Once disqualified, revival is difficult and time-consuming.
Role of ROC in Director Eligibility
The Registrar of Companies maintains records of:
Company filings
Director compliance history
Defaults and non-filing
ROC data is used to determine whether a director is eligible or disqualified.
How ROC Filings Help Avoid Disqualification
1. Annual Filing Compliance
Non-filing of annual returns and financial statements for three consecutive financial years is a major ground for disqualification.
Regular filing of:
AOC-4
MGT-7 / MGT-7A
keeps directors safe.
2. Director-Level Compliance (DIR-3 KYC)
DIR-3 KYC ensures director identity remains verified.
If DIR-3 KYC is not filed:
DIN gets deactivated
ROC filings fail
Disqualification risk increases
Annual KYC filing is non-negotiable.
3. Accurate Reporting of Director Changes
Delayed or incorrect filing of:
Director appointment
Director resignation
can wrongly show a person as active during periods of non-compliance, exposing them to disqualification.
4. Company Status Remains Active
Companies that remain compliant are shown as Active on MCA portal.
Non-compliant or struck-off companies often drag directors into disqualification, even when business is inactive.
Common ROC Defaults Leading to Disqualification
Non-filing of AOC-4 and MGT-7 for 3 years
Ignoring DIR-3 KYC
Operating struck-off companies
Incorrect director records on MCA
Most disqualifications are preventable.
Consequences of Director Disqualification
Ban from holding directorship for 5 years
Existing positions vacated
Inability to start or join companies
Reputational and financial damage
Disqualification impacts both personal and professional life.
How Directors Can Protect Themselves
Ensure annual ROC filings are completed on time
Personally track DIR-3 KYC status
Verify MCA portal records regularly
Exit non-compliant companies formally
Directors cannot rely blindly on companies or consultants.
Conclusion
ROC filings are not just company compliance.
They are personal protection tools for directors.
Timely and accurate ROC filings:
Prevent disqualification
Protect DIN status
Safeguard future opportunities
Ignoring filings is a high-risk gamble.
Call to Action
If your company has missed ROC filings or your director status is unclear on MCA records, take corrective action immediately to avoid disqualification.
Written by:
Abhishek Gupta
Chartered Accountant
Office No. 19, Sagar Building, 4th Floor, Plot-327,
Narshi Natha Street, Masjid Bunder (West),
Mumbai – 400009
📞9324776120
🌐 www.consultguruji.com