DIRECTOR IDENTIFICATION AND REGISTER OF DIRECTOR


English: Sir Ratan Tata, founder of Sir Ratan ...

English: Sir Ratan Tata, founder of Sir Ratan Tata Trust (Photo credit: Wikipedia)

Director identification Number is a prerequisite for appointment as director in a company in India. Same time Register of Directors and Key Managerial personnel serve the purpose of Record of interests of these persons in company and otherwise.

DIRECTOR IDENTIFICATION NUMBER (SECTIONS 153 – 159)

Every individual intending to be appointed as director of a company shall make an application for allotment for Director Identification Number (DIN) to the Central government. (Section 153)

The Central government shall within one month from the receipt of the application allot a Director Identification Number to the applicant. (Section 154)

No person who already has a Director identification Number shall apply for another Director Identification Number. (Section 155)

Every existing director, within one month of the receipt of Director Identification Number from Central Government, shall intimate the Number to all the companies where he/she is a director. (Section 156)

Every company, within fifteen days of the receipt of intimation from the director, shall furnish the Director Identification Number to the registrar. If a company fail to furnish Director identification within a period specified under Section 403, the company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees and every officer of the company who is in default shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees. (Section 157)

Every person or company, while furnishing any return, information or particulars as are required to be furnished under this Act, shall mention the Director Identification Number in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any director. (Section 158) Where a copy of such resolution is to be furnished somewhere, DIN should be mentioned. Simply, this is prudent to mention DIN in all resolutions.

If any individual or director of a company, contravenes any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to fifty thousand rupees and where the contravention is a continuing one, with a further fine which may extend to five hundred rupees for every day after the first during which the contravention continues. (Section 159)

REGISTER OF DIRECTORS AND KEY MANAGERIAL PERSONNEL AND THEIR SHAREHOLDING (SECTIONS 170 – 172):

Jamesetji Tata

Jamesetji Tata (Photo credit: Wikipedia)

Every company shall keep at its registered office a register containing particulars of its directors and key managerial personnel, which shall include the details of securities held by each of them in the company or its holding, subsidiary, subsidiary of company’s holding company or associate companies.

A return containing particulars and documents of the directors and the key managerial personnel shall be filed with the Registrar within thirty days from the appointment of every director and key managerial personnel, as the case may be, and within thirty days of any change taking place.

The register kept —

(a) shall be open for inspection during business hours and the members shall have a right to take extracts therefrom and copies thereof, on a request by the members, be provided to them free of cost within thirty days; and

(b) shall also be kept open for inspection at every annual general meeting of the company and shall be made accessible to any person attending the meeting.

If any inspection is refused, or if any copy required is not sent within thirty days from the date of receipt of such request, the Registrar shall on an application made to him order immediate inspection and supply of copies required there under.

If a company contravenes provisions, the company and every officer of the company who is in default shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees.

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11 responses to “DIRECTOR IDENTIFICATION AND REGISTER OF DIRECTOR

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