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Intimation by a director

Riddhi Jain (Chartered Accountant) (120 Points)

27 June 2012

1. Are there requirements in case a director is a Director in more than one company.

2. If yes, Is there any need for intimation to the ROC or the other companies.

3. If yes, what would be the appropriate form/format of intimation for the same.

4. Incase of any other requirements please intimate.

Thanks in advance.

Please reply.

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6 Replies

Karan Teli (Life Is just an Illusion...!!) (4573 Points)
Replied 27 June 2012

I have no exact point answer but you can refer to section 295, 297, 299, 300, 301, 303, 314.

This sections cover almost all the points for your question.

CS. DISHA SHAH (Properitor of D. M. SHAH & CO. COMPANY SECRETARY) (394 Points)
Replied 27 June 2012

Hiello

By provisions of Company Law a Individual can be a Director of upto 15 Companies.

Now, a person can be appointed as a Director in

1. Existing Company, and

2. New Company.

To be appointed as a director in Existing Company, he is not required to give any such declaration. but , in consent letter itself it gives declaration that he is not disqualified to appoint as a director, i.e. he has not exceeds the maximum limit of directorship.

In case of New Company it has to be intimated in e-Form - 1. u can see in e-Form 1 there is a colum asking about the directorship in another companies.

Jus have to keep in mind that he cnt b director of more than 15 Companies.

And, as a professional,

in your company if u have to appoint any one as a director who has already a DIN please track by his DIN No . that in which Companies he is a director and then go further.

2 Like

Riddhi Jain (Chartered Accountant) (120 Points)
Replied 27 June 2012

Thank you

But can u pls inform whether there is any intimation to be given to ROC or the other companies on annual basis.

Also is there any restriction as per Income Tax Act

CS MOHIT SALUJA (PRACTICING CS Jalandhar 9914558709) (5155 Points)
Replied 27 June 2012

As per section 275, a person can not be appointed as a Director in more than 15 companies. And 15 companies means the Public Limited Companies. It means he can be a directors in Any number of Private Limited Company but the limit to be a director is upto 15 companies only in case of Public Limited Companies.

To become a director in any company, a person is required to give declaration to the company that he is the director/ interested directo in following companies in Form 24 AA under Sec. 299 of CA, 1956. Ant moreover this information is required to be given by the director to his exiting companie also every year either at the end or at the begining of the Financial Year. No intimation is required to be given to the ROC or any other authority about his directorship in other companies. The format of Form 24 AA is as follows:

THE COMPANIES ACT, 1956

FORM NO.24AA

NOTICE BY THE INTERESTED DIRECTOR

(Pursuant to Section 299)

Board of Directors

................................... Limited

......................, Haryana

Dear Sirs,

I, ......................., S/o. Shri. ..........................., residing at ................................................ holding 2, 25, 000 shares (Equity) of Rs 10/- each ( 2.21 % of paid up capital) in the Company in my name, hereby give notice that I am interested directly in the following Companies/Firms.

Slno Name(s) of Companies/ Firms Nature of Interest

1. .............................. Limited Director cum Shareholder

2. .............................. Limited Director cum Shareholder

3. .............................. Limited Director cum Shareholder

4. .............................. Limited Director cum Shareholder

Signature:

Dated: 31.03.2012

*RENU SINGH * (✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ ) (21627 Points)
Replied 28 June 2012

yes dear ...

because AGM held every year and directors also get retired by rotation or otherwise ...

so in case , he retires or appoint in any company , then he must inform the ROC ,..

But he can't be a director in more than 15 companies.

SUNIL KUMAR JAIN (PRACTISING COMPANY SECRETARY) (187 Points)
Replied 04 July 2012

Dear All,

In the discussions as above section 305 of the Companies Act, 1956 has been missed out .Please go through the provisions of the same for necessary compliance.

Regards,

Sunil K. Jain

Practising Company Secretary

9810104162; skj13 @ rediffmail.com