The Ministry of Corporate Affairs vide its notification dated January 20, 2023 has amended the Companies (Appointment and Qualification of Directors) Rules, 2014.
The amended rules have come into effect from January 23, 2023.
Certain key changes are as follows:
EXPANSION OF THE SCOPE OF ELIGIBILITY DISCLOSURE BY THE PROPOSED DIRECTOR AT THE TIME OF APPOINTMENT AND RE-APPOINTMENT
Previously, the directors were required to confirm about non-applicability of such disqualifications, only related to non-filing of annual returns, financial statements; failure in repayment of deposits, declaration of dividend, redemption of debentures etc.
Now, the same declaration shall also cover the eligibility criteria under sub-section (1) of section 164 in Form DIR-8 and Company shall intimate about such disqualification if any, within 30 days of receipt of intimation in Form DIR-8 to the Registrar of Companies (ROC) declaring the requisite disqualification in the E- Form DIR-9.
APPLICATION FOR REMOVAL OF DISQUALIFICATION TO THE REGIONAL DIRECTOR IN E-FORM DIR-10
In order to remove the name from the list of disqualified Director, the Director after attaining the eligibility, shall file an application in E-Form DIR- 10 stating the grounds of his disqualification along with the company details and requisite attachments to the Regional Director.
The MCA has streamlined the provisions governing disqualification of Directors and made those in sync with the reporting’s related to disqualification.
Link of the MCA Notification is as follows:
PDF version is attached: https://www.dpncindia.com/blog/wp-content/uploads/2023/01/changes-in-company-law-rule.pdf
The summary information herein has been compiled by our expert team of tax consultants based on the MCA Update dated January 20, 2023. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of this information. Readers should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. This note is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.