Companies (Appointment and Qualification of Directors) Amendment Rules, 2018, notified by MCA

MCA Notifies the “Companies (Appointment and Qualification of Directors) Amendment Rules, 2018”

The MCA has notified the Companies (Appointment and Qualification of Directors) Amendment Rules, 2018, to revisse the process of allotment of DIN. Now the DIN shall be allotted through combined SPICe form for maximum 3 directors at the time of an individual’s appointment as Director.

It may be noted that Form DIR-3 (Application for DIN) is supposed to be used only by the existing companies for appointment of new Directors not having DIN. However, Persons incorporating new company but not having DIN can apply for the same through SPICe (INC-32), for a maximum of 3 Directors (i.e. for more directors, separate application in Form DIR-12 is to be submitted incorporation).

Companies (Appointment and Qualification of Directors) Amendment Rules, 2018: MCA Notification dt. 26 Jan. 2018

G.S.R… (E)– In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Appointment and Qualification of Directors) Rules, 2014, namely:

1. (1) These rules may be called the Companies (Appointment and Qualification of Directors) Amendment Rules, 2018. (2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Appointment and Qualification of Directors) Rules, 2014 (hereinafter referred to as the principal rules), in rule 9,

(A) for the marginal heading, the following marginal heading shall be substituted, namely:-

“Application for allotment of Director Identification Number before appointment in an existing company”; 

(B) for sub-rule (1), the following shall be substituted, namely:-

(1) Every applicant, who intends to be appointed as director of an existing company shall make an application electronically in Form DIR-3, to the Central Government for allotment of a Director Identification Number (DIN) along with such fees as provided under the Companies (Registration Offices and Fees) Rules, 2014.

Provided that in case of proposed directors not having approved DIN, the particulars of maximum three directors shall be mentioned in Form No.INC-32 (SPICe) and DIN may be allotted to maximum three proposed directors through Form INC-32 (SPICe)”;

(C) in sub-rule (3),

(I) In sub-clause (a), after sub-clause (iii), the following sub-clause shall be inserted, namely:-

“(iiia) board resolution proposing his appointment as director in an existing company”;

(II) for clause (b), the following clause shall be substituted, namely:-

“(b) Form DIR-3 shall be signed and submitted electronically by the applicant using his or her own Digital Signature Certificate and shall be verified digitally by a company secretary in full time employment of the company or by the managing director or director or CEO or CFO of the company in which the applicant is intended to be appointed as director in an existing company,”.

3. In annexure to the principal rules,

(A) for form No. DIR-3 the following form shall be substituted, namely:-

Form No. DIR-3 *

(B) For Form No. DIR-12, the following form shall be substituted, namely,

Form No. DIR-12 *

*please refer above attachment for detailed format

One Response

  1. Sarita Singh Feb 21, 2018

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