Anshu is Director of ABC Limited. The Company has failed to redeem debentures on the due date of 30th June, 2018 and the default is still continuing. MNO Limited is considering to appoint Anshu as its Director. Advise MN

Section 164 (2) of the Companies Act, 2013 (the Act) provides that: No person who is or has been a director of a company which: has not filed financial statements or annul returns for any continuous period of three financial years; or has failed to repay the deposit accepted by it or pay interest thereon or to redeem any debentures on due date or pay interest due thereon or pay any dividend declared and such failure to pay or redeem continues 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 failed to do so. In view of the above provisions, the default by ABC Limited to redeem debentures on due date of 30th June, 2018 is still continuing, therefore MNO Limited cannot appoint Mr. Anshu as its Director.