Question : Check on Board of Directors

(a) whether the Government is considering to collect passport details of people serving as directors on the board of companies and if so, the details thereof;

(b) whether this is being done as part of its efforts to prevent fraudsters from fleeing the country and if so, the details thereof; and

(c) whether the Government has stepped up efforts to curb illicit fund flows and has already deregistered more than 2.26 lakh firms for not carrying out business activities for long and if so, the details thereof?

THE MINISTER OF STATE FOR LAW AND
JUSTICE AND CORPORATE AFFAIRS (SHRI P. P. CHAUDHARY)
???? ?? ????? ??? ???????? ????? ???????? ??? ????? ?????? (???? ??? ??? ?????)

(a) & (b) Ministry of Corporate Affairs vide notification dated 5th July, 2018 has inserted rule 12A in Companies (Appointment and Qualification of Directors) fourth Amendment Rules, 2018, stating that every individual who has Director Identification Number (DIN) as on 31st March, of a financial year as per the rules, shall submit e-form DIR-3-KYC to Central Government on or before 30th April of immediate next financial year. Since this amendment has come into force on 10th July 2018 only, the deadline for the current year has been fixed as 31st Aug, 2018. The mention of Passport Number in the e-form is mandatory in case the Director is not a citizen of India or is a citizen of India having a valid passport. The KYC drive is being carried out to establish the traceability of individual DIN holders for greater compliance, enforcement, effective communication and to weed-out DIN holders who are no longer alive.

(c) During the financial year 2017-18, the Registrars of Companies (ROCs) have removed the names of 2,26,166 companies, from the register of companies, which had not filed their Financial Statements or Annual Returns for a continuous period of two or more financial years (2013-14 and 2014-15) and, prima facie, were not conducting any business, by following the due process under section 248 of the Companies Act, 2013.
*****