Corporate Identity Number (CIN) to Curb Registration of Fictitious Companies

The Government has said that to curb registration of fictitious companies, every company is being allotted Corporate Identity Number from the year 2000. Giving this information in written reply to a question in the Rajya Sabha, Shri Salman Khurshid, Minister of Corporate Affairs, has said that the Central Government has prescribed filing of address proof and identity proof for directors and thereafter Director Identification Number is allotted, which aborts formation of fictitious companies.

Referring to the appointment of Independent Directors on boards of companies, Shri Khurshid informed the House that there is no provision for appointment of independent directors in the Companies Act,1956. However, listed public companies appoint independent directors as per clause 49 of listing agreement prescribed by SEBI. The Ministry of Corporate Affairs has also released ‘Corporate Governance Voluntary Guidelines, 2009’ under which the attributes and tenure of the independent directors have been mentioned and it has also been mentioned that independent directors should have the option and freedom to meet company management periodically.