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.

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0 Comments

  1. AB says:

    This is a very wonderful innovation and will to a great extent ensure transparency in this regard and protect stakeholder-public and the Revenues of the State. Along with this, every company must have this CIN-specific mail id to be always displayed in all printed materials released by/relating to the respective entities.

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