The Ministry of Corporate Affairs has issued a notification w.r.t. Companies (Appointment & Qualification of Directors) Amendment Rules, 2014 dated 18th September, 2014. The effect of the amendment made in Companies (Appointment & Qualification of Directors) Rules, 2014 are as follows:
1. In sub-rule (2) of rule 6 of Companies (Appointment & Qualification of Directors) Rules, 2014:
a. Clause (c) shall be omitted which means that now the Independent directors are not required to furnish Income Tax PAN details to become eligible and willing to be appointed as Independent Director.
b. In clause (d) the words “and mother’s name and Spouse’s name” shall be omitted i.e. the Independent directors are not required to provide the mother’s name and spouse’s name.
c. In sub-rule (4) the words “in form DIR-1″ shall be omitted which means that now if any person who desires to get his name included in the data bank of the Independent Directors shall not be required to make an application in Form DIR-1.
2. In rule 9, sub-rule 3, clause (a) shall be amended as highlighted below:
a. “(a) The applicant shall download Form DIR-3 from the portal, fill in the required particulars sought “therein verify and sign the form” and after attaching copies of the following documents, scan and file the entire set of documents electronically.”
b. Sub-clause (iv) in sub-rule (3) of Rule 9 shall be omitted, which shall mean that now Form DIR-4 for verification by the applicant for allotment of DIN will not be required to be furnished.
c. After sub-rule (3) of Rule 9, the following sub-rule shall be inserted:
“(4) In case the name of the person does not have a last name, then his or her father’s or grandfather’s surname shall be mentioned in the last name along with the declaration in Form No. DIR-3A.”
3. a. In Rule 10, sub-rule (1), now an application number shall be generated by the system automatically in place of a provisional DIN be generated upon application for DIN made by the applicant.
b. Sub-rule (2) of Rule 10 shall be amended as follows:
(2) After generation of the “application number”, the Central Government shall process the applications received for allotment of DIN under sub-rule (2) of rule 9, decide on the approval or rejection thereof and communicate the same to the applicant along with the DIN allotted in case of approval by way of a letter by post or electronically or in any other mode, within a period of one month from the receipt of such application.
c. In sub-rule (4) of Rule 10,” the provisional DIN so allotted by the system shall get lapsed automatically” shall be omitted.
4. After Rule 10 the following Rule 10 A shall be inserted which shall be as follows:
“10A. (1) Every director, functioning as a director in one or more companies on or before the 30th June, 2007 and who has not yet intimated his DIN to such Company or Companies shall, within one month of receipt of Director Identification Number from the Central Government, intimate his Director Identification Number to the Company or all the Companies wherein he is a director as per Form DIR-3B.
(2) The intimation by the Company of Director Identification Number of its directors under section 157 of the Act shall be furnished in Form DIR-3C within fifteen days of receipt of intimation under Section 156.
5. In rule 11,after the words “application received”, the words “along with fee as specified in Companies (Registration Offices and Fees) Rules, 2014 shall be inserted.
6. In Rule 12 , in sub-rule (1), sub-clause (i) shall be amended as highlighted below:
(i) the applicant shall download Form DIR-6 from the portal and fill in the relevant changes, verify the Form and attach the duly scanned copy of the proof of the changed particulars and submit electronically.
7. The existing Form DIR-1 shall be omitted.
8. Form DIR-3 shall be downloaded in the latest version which is available under the forms tab at the website.
9. After Form DIR-3, the following forms shall be inserted namely:
a. DIR – 3A: Declaration
b. DIR – 3B: Intimation of allotment of Director Identification Number (DlN) to the Company by the Director
c. DIR – 3C: Intimation of Director Identification Number by the Company to the Registrar
Tags Corporate Law