Friday, March 24

Tag: Company Directors

Types of Company Directors in India

Types of Company Directors in India

The Companies Act 2013, defines Directors to be a part of the collective body, called to be as the Board of Directors. Directors are the trustees, guarding the property and money and acting as agents, for any transactions conducted on or behalf of the company. Directors as per the Companies Act are expected to perform the duties and obligations by being rationally diligent. For every action they take, their skills, experience, knowledge are trusted upon. Be it determining the objectives and policies or monitoring the same towards the achievement of goals, such appointed members on the board are liable for better management. Maximum and Minimum Directors Every company is required by law to have several directors to a maximum of 15. They are appointed by passing the Special Resolut...
Academia, Corporate, Regulatory

Consequences of Not Complying with DIR-3 KYC Mandate

Ministry of Corporate Affairs had mandated Directors of all companies (Private Limited, Public Limited, OPC), and designated Partners in Limited Liability Partnerships (LLP), including both active and disqualified directors, to submit their KYC details by furnishing the DIR 3 KYC e-Form. This initiative taken by the Ministry of Corporate Affairs will have a great impact and help to curb fake and shell companies. These are the companies suspected to have conduits for illicit money laundering. MCA had told that there are about 50 Lakh DINs issued till date and out of which there are around 33 Lakh Active Directors in India who are mandated to comply with this KYC mandate. If any director fails to submit their DIR 3 KYC form on or before the due date the DIN number of such director will be ...