What is Penalty for director disqualification?
Nexa Consultancy | Startup & Finance Glossary
A director can be disqualified for reasons like non-filing of a company's financial statements for three consecutive years. A disqualified director cannot be appointed as a director in any other company for a period of 5 years.
Startup Example: A founder of a failed startup that didn't complete its filings gets disqualified. They are now legally barred from becoming a director in their new venture for five years, creating a major roadblock.
Properly winding up old ventures is as important as starting new ones.