Explain the procedure in case a person seeking appointment as a Director of a company is a national of a country which shares land border with India and consequence of non-compliance in this regard.

The Ministry of Corporate Affairs (MCA) vide its notification dated June 1, 2022 has notified the Companies (Appointment and Qualification of Directors) Amendment Rules, 2022 which has come into force on the date of its publication in the Official Gazette. The amendments inter-alia provide that: i) In case the person seeking appointment is a national of a country which shares land border with India, necessary security clearance from the Ministry of Home Affairs shall also be attached along with the consent (Form DIR-2).(Insertion of proviso to Rule 8) Consequence of Non-compliance ii) No application number shall be generated in case of the person applying for Director Identification Number (DIN) is a national of a country which shares land border with India, unless necessary security clearance from Ministry of Home Affairs has been attached along with application for DIN (Form DIR-3).{Insertion of proviso to Rule 10(1)} iii) In form DIR-12 a declaration is inserted to be opted by person seeking appointment as director as to whether the national of a country which shares land border with India has sought necessary security clearance from Ministry of Home Affairs or not.