MCA amending the companies appointment qualification of directors amendment rules

Ministry of Corporate Affairs (“MCA”) had on the 01^st day of June 2022 issued a notification for the purpose of amending the Companies (Appointment and Qualification of Directors) Rules, 2014 (“Rules”) by amending certain provisions which are produced as under:-

• A new proviso has been inserted in rule 8 which provides for the requirement to produce necessary security clearance from the Ministry of Home Affairs, Government of India to be attached along with the consent for the person seeking appointment in case he is a national of a country which shares a land border with India;
• A new proviso has been inserted in rule 10 (1) which provides that no application number shall be generated to the person seeking appointment in case he is a national of a country that shares a land border with India, unless security clearance from the Ministry of Home Affairs, Government of India is attached along with an application for DIN;

As per rule 10 (1) allotment of Director Identification Number (“DIN”) is laid down which is allotted after confirmation from the Central Govt. obtained on the basis of provisional DIN by the portal after submission of form DIR-3 and requisite fee;

• In form DIR-12 a new declaration is inserted, which is to be opted by a person seeking appointment as director in case he is a national of a country that shares a land border with India whether he has sought necessary security clearance from the Ministry of Home Affairs or not

The said rules shall be effective from the date of its publication i.e. 01^st day of June 2022.

The complete text of the Rules may be viewed at the below link:

https://bit.ly/3tNLH6s

Last updated: 17/06/2022

Article contributed by:

Syed Arsalan Ahmed

Associate - Legal

MBG Corporate Services