Counterparty Risk Radar

A disqualified director cannot be appointed to any company board for up to 5 years. Appointing a disqualified director voids the appointment and can expose the company to prosecution. §164(2), Companies Act 2013.

Before signing a contract

Ensure your counterparty company legally exists and its directors can validly bind it.

Before lending or investing

A struck-off borrower cannot repay legally. A disqualified guarantor cannot give enforceable security.

Before appointing a director

Appointing a §164(2)-disqualified person voids the appointment and can attract §167 prosecution.

Before a joint venture

A JV with a struck-off entity is void ab initio — no rights, no recourse under the agreement.

What is director disqualification under Section 164(2)?

If a company fails to file its annual returns or financial statements for three consecutive years, all directors of that company are automatically disqualified for five years from holding any directorship in any company. This is a strict liability — no intent required. Source: §164(2), Companies Act 2013.

What happens if I sign a contract with a struck-off company?

A company struck off under §248 ceases to exist as a legal entity. Any contract entered into with a struck-off company after its strike-off date is void ab initio — it has no legal effect. The counterparty cannot sue, hold property, or operate bank accounts. Source: §248, Companies Act 2013.

Can a disqualified director still sign documents?

No. A disqualified director vacates their office automatically on the date of disqualification under §167. Any documents signed by them after disqualification are not validly executed on behalf of the company. The company must immediately appoint a new director. Source: §167(1), Companies Act 2013.

Where does this data come from?

Our data is sourced from MCA21 — the Ministry of Corporate Affairs official portal — including the published disqualification circulars (DIN-wise lists) and struck-off company notifications in the Official Gazette. We backfill historical MCA publications and refresh on new MCA releases.

What does a "clear" result mean?

A "clear" result is not a clean bill of health. MCA publishes disqualification and struck-off notices with a lag. A §164(2) disqualification can legally already be in effect before MCA publishes the list. Use this tool as one data point — not a substitute for full due diligence.

What is a CIN and how do I find it?

A Corporate Identification Number (CIN) is a 21-character alphanumeric code assigned to every registered company in India. It encodes listing status, industry, state, year of incorporation, entity type, and a serial number. You can find a company's CIN on their letterhead, invoice, MoA, or by searching on MCA21.