for appointment of Director without DIN

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Khushal Paliwal

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Apr 22, 2011, 3:14:38 AM4/22/11
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Dear All,

Is it possible to appoint any person as a director before obtaining DIN ? and intimate the DIN no later.

Regards
Khushal

CS.Omkar

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Apr 22, 2011, 3:21:43 AM4/22/11
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Dear Mr. Khushal,
 
Forwarding earlier discussion on the captioned subject, which may be useful to you!
 
Regards...Omkar
===========================
Dear Jayashree/Omkar

I agrre with Mr. Omkar, if appointment is made before getting DIN,
then its a non-compliance of the provisions.I mean, there is a legal
bar, better 1st get DIN and then appoine/upload Form-32.


Regards
Bidu Bhusan

---------- Forwarded message ----------
From: N G Omkar <n.g....@in.ats.net>
Date: Fri, Apr 8, 2011 at 12:37 PM
Subject: Re: [CSMysore] Appointment of Director
To: csmy...@googlegroups.com



Dear Ms. Jayashree,

I find many companies appointing a person as director and then applying for DIN. However, is it not violation of proviso to Sec-253 added vide the Companies (Amendment) Act, 2006 which is effective 01-11-2006?

QUOTE

"Section 253 - ONLY INDIVIDUALS TO BE DIRECTORS.
No body corporate, association or firm shall be appointed director of a company, and only an individual shall be so appointed:

Provided that no company shall appoint or re-appoint any individual as director of the company unless he has been allotted a Director Identification Number under Section 266B."

UNQUOTE

Regards...Omkar



Jayashree Chandrasekaran <jayak...@gmail.com>
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08/04/2011 11:52 AM

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Now that you can apply for DIN online the number will be allotted immediately...there is no legal bar in appointing a person as director without DIN number
Jayashree

On Fri, Apr 8, 2011 at 10:29 AM, DILIP DARJI <cs.dil...@gmail.com> wrote:
Dear All,

I have one query

If I appoint a diector today say 08.04.2011  and there after i apply for DIN which will be approved by say 20.04.2011.

Now my query is that whether  I will get any technical issue while filing form 32 that appointment date is prior to applying for DIN say after my din is approved within 30 days.



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Professionally Yours,

CS. Dilip Darji
Mumbai

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Khushal Paliwal

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Apr 22, 2011, 3:29:09 AM4/22/11
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Thanks for the prompt reply.

Shekhy

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Apr 22, 2011, 4:41:52 AM4/22/11
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Dear Omkar Sir and Jayashree Madam,


I want to mention 2 things regarding DIN:

1. In your reply, DIN means approved DIN or Provisional DIN?? 

2. If its about approved DIN, thn pls read Section 266A - "Provided further that every applicant, who has made an application under this Section for allotment of DIN , may be appointed as a Director in a company, or hold office as a director in a company till such time such applicant has been alloted DIN"    

pls clarify...................

Warm Regards,

Sheikhar Naik
Mysore
Mobile No.:+919008798930

CS Akshaya Kumar Pradhan

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Apr 22, 2011, 4:59:56 AM4/22/11
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See, if u hv a provisional DIN u can appoint that person as director.But to file form 32 u need to have an approved DIN.
 
In other words, appintment with provisional DIN is ok but the same must be approved within 30 days of appintment so that eform 32 can be filed without additional fees.
 
However in the current scenaraion u will  get the approved DIN on uploading the DIN1(if  digitallysigned by a professional) in the mca portal otherwise provisional DIN(if DIN1 signed by the applicant) can be approved in two days time.
 
Hope this clarifies position.

Thanks With Warm Regards
Akshaya Kr Pradhan
Chennai-600094
Mob.+91-99520-29075

N G Omkar

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Apr 22, 2011, 5:09:43 AM4/22/11
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Dear Mr. Sheikhar and Mr. Pradhan,

What you have mentioned is perfect. However, if you read Section 253, it requires approved DIN only as it refers to DIN allotted u/s 266B. I feel that proviso to Sec 253 and second proviso to Sec 266A contradicts each other.

QUOTE

"Section 253 - ONLY INDIVIDUALS TO BE DIRECTORS.

No body corporate, association or firm shall be appointed director of a company, and only an individual shall be so appointed:


Provided that no company shall appoint or re-appoint any individual as director of the company unless he has been allotted a Director Identification Number under Section 266B."

UNQUOTE

Regards...Omkar



CS Akshaya Kumar Pradhan <akshayakum...@gmail.com>
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22/04/2011 02:30 PM

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Vivek Hegde

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Apr 22, 2011, 5:20:56 AM4/22/11
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Dear Omkar

You explanation is well appreciated. But when the DIN rules came in 2006 there were so many directors who have already been appointed as directors without having DIN, but Form 32 was not filed. So it was taken as granted that a person can be appointed as a director without DIN and apply for DIN thereafter. 

Even while filing Form 32(which has undergone change so many times), the system will not correlate the date of approval of DIN and date of appointment. Even we can file form 32 for the appointment of director 4-5 years back, who has obtained DIN now. 

MCA should amend Form 32 in such a way that it correlates the date of approval of DIN and date of appointment. Then such practices can be curbed easily.

Vivek 
Warm Regards

CS Vivek Hegde,B.com, ACS, CWA
Company Secretary in Practice
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Bidu Bhusan Dash

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Apr 22, 2011, 5:26:14 AM4/22/11
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As per section 253 it is alloted DIN not approved DIN, provisional DIN is also a alloted DIN








Regards
Bidu

Shekhy

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Apr 22, 2011, 6:07:32 AM4/22/11
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Dear Bindu,

Section 253 is supported by the Section 266B 

It says -The Central Government shall, within one month from the receipt of the
application under section 266A, allot a Director Identification Number to an
applicant, in such manner as may be prescribed.


266A says - 266A. Every—
(a)Individual, intending to be appointed as director of a company; or
(b)Director of a company appointed before the commencement of the
Companies (Amendment) Act, 2006,
shall make an application for allotment of Director Identification Number to the Central
Government in such form, and manner (including electronic form) along with such fee, as
may be prescribed:

Provided that every director appointed before the commencement of the
Companies (Amendment) Act, 2006 shall make, within sixty days of the commencement
of the said Act, such application to the Central Government:

Provided further that every applicant, who has made an application under this
section for allotment of Director Identification Number, may be appointed as a director in a
company, or, hold office as director in a company till such time such applicant has been
allotted Director Identification Number.

That means it is approved DIN as per section 266B and 253...

Other members views are solicited 




Warm Regards,

Sheikhar Naik
Mysore
Mobile No.:+919008798930


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N G Omkar

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Apr 22, 2011, 6:35:13 AM4/22/11
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I agree with you Mr. Sheikhar.

Regards...Omkar


Shekhy <shekha...@gmail.com>
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22/04/2011 03:38 PM

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CS Akshaya Kumar Pradhan

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Apr 22, 2011, 6:56:08 AM4/22/11
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 Dear Sheikhar Naik
 
With Provisional DIN u can appint a director in a Board/General Meeting.No Violation.Oroviso to  Sec 266 A permits this.Which we are also doing.I am saying this out of my 3 and 1/2 years of woking in MCA 21 project.

Shekhy

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Apr 22, 2011, 8:04:39 AM4/22/11
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Dear Sir Akshaya,

My opinion is also same. We can do like that............ But Section 253 says abt approved DIN (supported by 266B) and Section 266A says Application for DIN that is Provisional DIN. 

Confusing....... which will prevail....   





Warm Regards,

Sheikhar Naik
Mysore
Mobile No.:+919008798930

CS Akshaya Kumar Pradhan

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Apr 22, 2011, 8:14:26 AM4/22/11
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Dear Sheikhar Naik
 
Proviso to different sections of the act of 1956 are exceptions only.Comparing these confusing and conflicting provisos is not worth doing.If two sections of the act are contradicting then that needs clarification and amendment of the same if reqd  and not the proviso
 
Hope this clarifies the position.

Sushmita Roy

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May 9, 2011, 8:06:57 AM5/9/11
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Section 266A clearly says that every individual ,intending to be appointed as director of a company shall make an applicatiion for allotment of DIN. So, DIN is compulsory for appointing a director.
 
Regards,
ACS Sushmita Roy

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