Q3. Mr Arun files an application for the allotment of DIN as on 1st Ju

1.	Q3. Mr Arun files an application for the allotment of DIN as on 1st July, 2016. In meanwhile,TCS limited has passed a resolution in the extra ordinary general meeting as on 27th July, 2016for Mr Arun appointed as director on the basis of application number generated after filing ofapplication. ROC made an objection for such appointment that on the basis of applicationnumber no individual can be appointed as a director as per sec 152(2) appointment of director,whether contention of ROC tenable as per law? Clarify and give relevant provisions fromCompanies Act, 2013.
Answer» Answer: DIN APPLICATION & ALLOTMENT- THE AMENDMENTS INTRODUCTION The Ministry of Corporate Affairs is aiming towards ease of doing business and intends to simplify the PROCEDURE of incorporation of a company. As per the erstwhile provisions, the in order to INCORPORATE a company the person proposed to hold DIRECTORSHIP thereof had to first obtain DIN by filing form DIR-3 as DIN was one of the pre-requisite for making application for reservation of name in Form INC-1. This process was time taking considering separate DIR-3 for the respective directors were involved followed by application for name reservation in form INC-1 and then for incorporation in INC-32. To reduce the HASSLE of this multi layered incorporation process the Ministry has come up with Companies (Appointment and Qualification of Directors) Rules, 2014.

Q3. Mr Arun files an application for the allotment of DIN as on 1st July, 2016. In meanwhile,TCS limited has passed a resolution in the extra ordinary general meeting as on 27th July, 2016for Mr Arun appointed as director on the basis of application number generated after filing ofapplication. ROC made an objection for such appointment that on the basis of applicationnumber no individual can be appointed as a director as per sec 152(2) appointment of director,whether contention of ROC tenable as per law? Clarify and give relevant provisions fromCompanies Act, 2013.

Answer»

Answer:

DIN APPLICATION & ALLOTMENT- THE AMENDMENTS

INTRODUCTION

The Ministry of Corporate Affairs is aiming towards ease of doing business and intends to simplify the PROCEDURE of incorporation of a company. As per the erstwhile provisions, the in order to INCORPORATE a company the person proposed to hold DIRECTORSHIP thereof had to first obtain DIN by filing form DIR-3 as DIN was one of the pre-requisite for making application for reservation of name in Form INC-1. This process was time taking considering separate DIR-3 for the respective directors were involved followed by application for name reservation in form INC-1 and then for incorporation in INC-32. To reduce the HASSLE of this multi layered incorporation process the Ministry has come up with Companies (Appointment and Qualification of Directors) Rules, 2014.

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