Recent amendments related to Directors appointment, Form DIR-2 & DIR-3

Today’s tour of article is all about the latest & recent amendments being done in the Companies Act,2013 vide Companies (Appointment and Qualification of Directors) Second Amendment, Rules, 2022 and Companies (Appointment and Qualification of Directors) Amendment Rules, 2022. 

1. Amendment dated 10^th June 2022:  Amendment in Rule 6 of Companies (Appointment and Qualification of Directors) Rules, 2014 vide Companies (Appointment and Qualification of Directors) Second Amendment, Rules, 2022

Amendment is: the following proviso shall be inserted:

If the name of any individual has been removed from the databank under sub-rule (4) of Rule 6 of Companies (Appointment and Qualification of Directors) Rules, 2014, may apply for restoration of his/her name on the payment of fees of 1000/- Rs. (Rupees One Thousand Only) and the institute shall allow restoration of name, subject to the following conditions, namely: –

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

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

Sub Rule (4) of Rule 6 of Companies (Appointment and Qualification of Directors) Rules, 2014 speaks that; Online proficiency self-assessment test conducted by the institute shall be passed by every Individual whose name is so included in the data bank within a period of two 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:

2. Amendment dated 01^st June 2022: Amendment in Rule 8 of Companies (Appointment and Qualification of Directors) Rules, 2014 vide  Companies (Appointment and Qualification of Directors) Amendment Rules, 2022

Amendment is: the following proviso shall be inserted:

“Provided further that in case the person seeking appointment as a director is a national of a country which shares land border with India, necessary required to obtain security clearance from the Ministry of Home Affairs, Government of India and shall also be mandatorily attached along with the consent.”

3. Amendment in the Rule 10 of Companies (Appointment and Qualification of Directors) Rules, 2014 videCompanies (Appointment and Qualification of Directors) Amendment Rules, 2022

Amendment is: the following proviso shall be inserted:

“Provided that in case the person applying for Director Identification Number is a national of a country which shares land border with India, then he/she is mandatorily required to obtain the security clearance from the Ministry of Home Affairs, Government of India and attached the same along with application for Director Identification Number, if not; DIN shall not be allotted.”

4. Amendment in the Annexure DIR-2 vide Companies (Appointment and Qualification of Directors) Amendment Rules, 2022

In Form DIR-2(Consent to act as a director of a Company), under the heading Declaration, the declaration pursuant to the amendment in the Rule 8 of (Appointment and Qualification of Directors) Rules, 2014 shall be mandatorily given.

5. Amendment in the DIR-3 vide vide Companies (Appointment and Qualification of Directors) Amendment Rules, 2022

In Form No. DIR-3(Application for the Allotment of DIN/DPIN), under the heading Verification, after serial number 3, the declaration pursuant to the amendment in the Rule 10 of (Appointment and Qualification of Directors) Rules, 2014 shall be mandatorily given.

Disclaimer: This article is written merely for informational purposes, and it should not be taken as a piece of legal advice.