Question
To become a director in a company the person must obtain
The correct answer is
DIN
Company Director: Understanding the DIN Requirement
To be appointed as a director in a company, a specific identification number is mandatory. This number ensures the identity verification of the director.
What is DIN?
DIN stands for Director Identification Number. It is a unique identification number issued by the Central Government to any individual who intends to become a director or is already a director in a company, according to the Companies Act.
- DIN is essential for fulfilling directorship roles.
- It is a prerequisite for appointment as a director.
Why Other Options Are Incorrect
While other documents are important for businesses, they do not specifically grant the qualification to become a director:
- Business Licence: This is required for operating a business but not for the directorship role itself.
- Director’s Licence: This is not a standard requirement for becoming a company director in most jurisdictions. The unique identifier is DIN.
- TIN (Taxpayer Identification Number): While directors need to pay taxes and have a TIN, it is not the specific number required for directorship appointment.
Therefore, obtaining a DIN is the necessary step to become a director.
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Important Questions from Company law
- The problem of double taxation in international transactions can be reduced by:
i. Market agreement
ii. Multilateral agreement
iii. Bilateral agreement.
iv. Trade agreement - Under the Companies Act 2013, which of the following company is required to constitute a Corporate Cocial Responsibility Committee?
(a) company having networth of Rs. 500 crore or more
(b) company having turnover of Rs. 1000 crore or more
(c) company having net profit of 5 crore or more
(d) company having net profit of 2 crore or more during any financial year
Choose the most appropriate option : - Which one statement is correct from the following statements ?
- Which of the following statement (s) is/are incorrect? Answer using codes given below :
(a) In Attorney General v. Great Eastern Railway Co. the House of Lords observed that the doctrine of ultra vires as it was explained in the Ashbury case, should not be maintained.
(b) Section 13 (i) (c) of the Companies Act provides incidental objects which need not be stated in the memorandum.
(c) If incidental objects are not stated in the memorandum, they would not be allowed by the principle of reasonable construction
(d) The doctrine of indoor management operates to protect insiders against the company
Codes : - Read Assertion (A) and Reason (R) and answer using the codes given below :
Assertion (A): Shareholders are not, in the eye of law, part owners of a company. The company is something different from the totality of the shareholders.
Reason (R) : Shareholders are collective owners of the company.
Codes :
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