Practice free →
HomeLLMLawCorporate Law › Under Section 152(3) Companies Act 2013, every i…

Under Section 152(3) Companies Act 2013, every individual who proposes to be appointed as DIRECTOR must obtain:

Aonly a CA certification of his personal net worth being above Rs 1 crore minimum (cf. Companies Act 2013, Section 152(3); Companies (Appointment and Qualification of Directors) Rules 2014)
Ba DIRECTOR IDENTIFICATION NUMBER (DIN) issued by the Central Government on application in Form DIR-3 (or DIR-3 KYC for renewal annually)
Conly a Companies Act compliance certificate from the Company Secretary (cf. Companies Act 2013, Section 152(3); Companies (Appointment and Qualification of Directors) Rules 2014)
Donly a board resolution from the proposed company appointing him as director (cf. Companies Act 2013, Section 152(3); Companies (Appointment and Qualification of Directors) Rules 2014)
Answer & Solution
Correct answer: B. a DIRECTOR IDENTIFICATION NUMBER (DIN) issued by the Central Government on application in Form DIR-3 (or DIR-3 KYC for renewal annually)
1. Section 152(3) Companies Act 2013: 'No person shall be appointed as a director of a company unless he has been allotted the DIRECTOR IDENTIFICATION NUMBER under SECTION 154 or any other number as may be prescribed under section 153.' 2. Section 153 — every individual intending to be appointed as director shall make an application to the Central Government for DIN. 3. DIN application in Form DIR-3 with prescribed fees and documents. 4. DIN-3 KYC must be filed annually by every DIN holder before 30 September. 5. Section 165 limits directorships per person; DIN tracks compliance. 6. Hence option B is correct. _Source: Companies Act 2013 (Act 18 of 2013), Govt. of India MCA — Companies Act 2013, Section 152(3); Companies (Appointment and Qualification of Directors) Rules 2014_
Solve this in the app — LLM practice & 24k+ MCQs →
Related questions