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MCA notifies Companies (Appointment and Qualification of Directors) Amendment Rules, 2022 and amended Rule 8, Rule 10, Annexure, Form DIR-2, FORM NO. DIR-3 of Companies (Appointment and Qualification of Directors) Rules, 2014 to amend rules applicable to a person applying for Director Identification Number is a national of a country which shares land border with India.

In the Companies (Appointment and Qualification of Directors) Rules, 2014, after Rule 6 (4) the following sub-rule shall be inserted:

(5) Any individual whose name has been removed from the databank under sub-rule (4), may apply for restoration of his name on payment of fees of one thousand rupees and the institute shall allow such restoration subject to the following conditions, namely:

(i) his name shall be shown in a separate restored category for a period of one year from the date of restoration within which, he shall be required to pass the online proficiency self-assessment test and thereafter his name shall be included in the databank, only, if he passes the said online proficiency self-assessment test and, in such case, the fees paid by him at the time of initial registration shall continue to be valid for the period for which the same was initially paid; and

(ii) in case he fails to pass the online proficiency self-assessment test within one year from the date of restoration, his name shall be removed from the data bank and he shall be required to apply afresh under sub-rule (1) for inclusion of his name in the databank.”

Comments: Rule 6(4) provides that, “every individual whose name is so included in the data bank shall pass an online proficiency self-assessment test conducted by the institute within a period of 2 years from the date of inclusion of his name in the data bank, failing which, his name shall stand removed from the databank of the institute.”

Until now, if the name was removed under sub-rule (4), the individuals whose names were so removed were required to apply afresh under sub-rule (1), however, vide this notification, an opportunity is provided to such individuals to restore their names upon payment of fees of ₹1,000 subject to the following conditions:

i. name shall be shown in a separate restored category for a period of 1 year from the date of restoration;

ii. such individual shall be required to pass the online proficiency self-assessment test within a period of 1 year from the date of restoration;

iii. name shall be included in the databank, only, if the individual passes the said online proficiency self-assessment test;

iv. upon passing the test, the fees paid by the individual at the time of initial registration shall continue to be valid for the period for which the same was initially paid;

v. in case the individual fails to pass the online proficiency self-assessment test within 1 year from the date of restoration, his name shall be removed from the data bank;

vi. upon failing the online proficiency self-assessment test, the individual shall be required to apply afresh under sub-rule (1) for inclusion of his name in the databank.

MINISTRY OF CORPORATE AFFAIRS

NOTIFICATION

New Delhi, the 1st June, 2022

G.S.R. 410(E).In exercise of the powers conferred under second proviso to sub-section (1), sub-section (4), clause (f) of sub-section (6) of section 149, sub-sections (3) and (4) of section 150, section 151, sub-section (5) of section 152, section 153, section 154, section 157, section 160, sub-section (1) of section 168 and section 170 read with 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. Short title and commencement.- (1) These rules may be called the Companies (Appointment and Qualification of Directors) Amendment Rules, 2022.

(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, ―

(i) in rule 8, after the proviso, the following proviso shall be inserted, namely:-

“Provided further that in case the person seeking appointment is a national of a country which shares land border with India, necessary security clearance from the Ministry of Home Affairs, Government of India shall also be attached alongwith the consent.”;

(ii) in rule 10, in sub-rule (1), the following proviso shall be inserted, namely: –

“Provided that no application number shall be generated in case of the person applying for Director Identification Number is a national of a country which shares land border with India, unless necessary security clearance from the Ministry of Home Affairs, Government of India has been attached alongwith application for Director Identification Number.”.

(iii) in the Annexure, –

(A) in Form DIR-2, under the heading Declaration, the existing paragraph, shall be numbered as paragraph (i) thereof and after the paragraph (i) as so numbered, the following shall be inserted, namely:-

“(ii) I further declare that –

I am not required to obtain the security clearance from the Ministry of Home Affairs, Government of India before seeking appointment as director;

I am required to obtain the security clearance from the Ministry of Home Affairs, Government of India before seeking appointment as director and the same has been obtained and is attached.              ”;

(B) in FORM NO. DIR-3, under the heading Verification, after serial number 3, the following serial number shall be inserted, namely:-

“3A. I am not required to obtain the security clearance from the Ministry of Home Affairs, Government of India under sub-rule (1) of rule 10 before applying for director identification number;  or

I am required to obtain the security clearance from the Ministry of Home Affairs, Government of India under sub-rule (1) of rule 10 before applying for director identification number and the same has been obtained and is attached. ; and ”.

[F. No. 1/22/2013-CL-V]

MANOJ PANDEY, Jt. Secy.

Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification number G.S.R. 259(E), dated the 31st March, 2014 and were last amended, vide notification number G.S.R. 579(E), dated the 19th August, 2021.

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The author can also be reached at cstanveersaluja@gmail.com.

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One Comment

  1. K Lakshmi says:

    Dear Sir,

    Pls clarify, how the clearance shall be obtained? what is the procedure and how to proceed with the same.

    Thank you

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