Bhupesh is a director of ABC Ltd. which is a Government Company. The company has accepted deposits from public in the financial year 2020-21. As on 31 st March 2022, deposits of ₹51 crore were outstanding and due date of

Section 164(2) of the Companies Act, 2013 provides that no person who is or has been a director of a company which- Has not filed financial statements or annual returns for any continuous period of 3 financial years; or Has failed to repay the deposits accepted by it or pay interest thereon or to redeem any debentures on the due date or pay interest due thereon or pay any dividend declared and such failure to pay or redeem continuous for one year or more, shall be eligible to be re-appointed as a director of that company or appointed in other company for a period of five years from the date on which the said company fails to do so. Further, in case of Government Companies, section 164(2) shall not apply vide Notification No. GSR 463(E) dated 05-06-2015. In the given case ABC Ltd., is a Government Company, so the above said section 164(2) is not applicable to ABC Ltd. In such company, directors are not disqualified for the appointment or reappointment as a director in the same company or any other company. So, Bhupesh who is a director in the Government Company is eligible to be appointed as a director in TNC Ltd.