Tagging of Directors- Companies (Appointment and Qualification of Directors) Second Amendment Rules, 2019

Tagging of Directors- Companies (Appointment and Qualification of Directors) Second Amendment Rules, 2019

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May 20

2024

Posted by: CS Shilpi Thapar

Ministry of Corporate Affairs(MCA) vide its Notification No. G.S.R. 368(E) dated 16th May, 2019, amended Companies (Appointment and Qualification of Directors) Rules, 2014 with  Companies (Appointment and Qualification of Directors) Second

Amendment Rules, 2019 thereby making a provision of tagging the Directors into 2 categories based on filing of ACTIVE -INC form 22A with MCA till 15th June,2019 i.e Director of ACTIVE complaint company and Director of ACTIVE Non-compliant company. It is a responsibility cast on Directors to ensure that said form is filed with MCA by 15.06.2019 by their ACTIVE companies in order to avoid such tagging of being director of non-compliant company.

  • Date of Enforcement of Rules: The Rules came into force on the date of their publication in the Official Gazette i.e. 16th May, 2019.
  • Rule 12B is inserted to the Companies (Appointment and Qualification of Directors) Rules, 2014, after rule 12A as :

12B. Directors of company required to file e-form ACTIVE

  1. Where a company governed by Rule 25A of the Companies (Incorporation) Rules, 2014 (i.e. Companies incorporated on or before      31/12/2017, which is under mandatory requirement to file form INC-22A) fails to file the e-form ACTIVE within the period specified therein (i.e. 15.06.2019), the Director Identification Number (DIN) allotted to its existing directors, shall be marked as “Director of ACTIVE non-compliant company
  2. Where the DIN of a director has been marked as “Director of ACTIVE non-compliant company”, such director shall take all necessary steps to ensure that all companies governed by rule 25A of the Companies (Incorporation) Rules, 2014, where such director has been so appointed, file e-form ACTIVE.
  3. On compliance with Rule 25A of the Companies (Incorporation) Rules, 2014, the DIN so marked as Director of ACTIVE non-compliant company, shall be marked as “Director of ACTIVE compliant company”.

Disclaimer: The views expressed here are for general information only and not to be considered as legal opinion. One should seek advice from legal advisor before acting on the basis of information provided herein. We disclaim all liability (on my own behalf and that of my firm) in respect of actions taken based on above information.

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