Anil, Sunil and Sunita are proposed to be first directors in the Articles of Association of the proposed company. However, as they do not have DIN would not be able to assume office of director immediately on incorporati

CS Executive · Company Law and Practice · PYQS · December 2023
Anil, Sunil and Sunita are proposed to be first directors in the Articles of Association of the proposed company. However, as they do not have DIN would not be able to assume office of director immediately on incorporation of the company. Is there any way out available to obtain DIN simultaneously with incorporation of the company so that the company, on incorporation, will meet the requirement of having minimum number of directors? Advice, referring to the provisions of the Companies Act, 2013.

Answer & Explanation:

As per rule 38 of the Companies (Incorporation Rules), 2014, the application for allotment of Director Identification Number upto three Directors, reservation of a name, incorporation of company and appointment of Directors of the proposed for One Person Company, private company, public company and a company falling under section 8 of the Act. Shall be filed in SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus:INC-32) with the Registrar, within whose jurisdiction the registered office of the company is proposed to be situated. Any person (not having approved DIN) proposed to become a first director in a new company shall have to make an application through web form SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus: INC-32) for allotment of DIN. For the purposes of filing SPICe Form, the particulars of maximum of three directors shall be allowed to be filled in SPICe+ (Simplified Proforma for Incorporating company Electronically Plus: INC-32), and allotment of Director Identification Number of maximum of three proposed directors shall be permitted in SPICe+ (Simplified Proforma for Incorporating company Electronically Plus: INC-32) in case of proposed directors not having approved Director Identification Number. The applicant is required to attach the proof of Identity, address, specimen signature duly verified. etc. along with the application. DIN would be allocated to User only after approval of the form. [Section 153 read with rule 9 of the Companies (Appointment and Qualification of Directors) Rules, 2014]. Once the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus: INC-32) is processed and found complete, company would be registered and CIN would be allocated. Also DINs gets issued to the proposed Directors who do not have a valid DIN. Thus, with this facility Anil, Sunil and Sunita may obtain DIN simultaneously with the process of incorporation of the company and can assume the office of directorship immediately on incorporation of the company and meet the requirement of having minimum number of directors.

Topics: Company Law

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