All the three directors of A Ltd. were also the directors of B Ltd. However, the three directors have been disqualified under Section 164 as B Ltd. has defaulted in filing their financial statements for the previous thre

According to Section 167(1) of the Companies Act, 2013, the office of a director shall become vacant in case he incurs any of the disqualifications specified in section 164 of the Companies Act, 2013. Further, where the directors incur disqualifications under section 164 sub-section (2), the office of director shall become vacant in all the companies, other than the company which is in default under that sub-section. Section 167(3) provides that where all the Directors of a company vacate their offices under any of the disqualifications specified in sub-section (1) of section 167, the promoter or, in his absence, the Central Government shall appoint the required number of Directors who shall hold office till the Directors are appointed by the company in general meeting. Hence, Shyam as Promoter of the Company can proceed with the appointments of fresh directors.