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.
Important Questions from Company law
Arrange the following as per sections of the Companies Act, 2013 in descending order :
A. Execution of Bills of Exchange, etc.
B. Punishment in case of repeated default
C. Annual reports on Government Companies
D. Petition for winding up
E. Functions of Company Secretary
Choose the correct answer from the options given below:
Match List I with List - II.
List - I
List - II
(A)
Producer companies
(I)
Do not necessarily require Memorandum of Association
(B)
Statutory companies
(II)
Association not for profit
(C)
Section 8 company
(III)
Formed to convert cooperative into a company
(D)
Small company
(IV)
Paid up share capital is between 50 lakh-5 crore and turnover is between 2 crore - 20 crore
Choose the correct answer from the options given below:
Red herring prospectus is a prospectus issued:
- The problem of double taxation in international transactions can be reduced by:
i. Market agreement
ii. Multilateral agreement
iii. Bilateral agreement.
iv. Trade agreement - Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R
Assertion A: Every company having net worth of rupees five hundred crores or more or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during the immediately preceding financial year shall constitute a Corporate Social Responsibility Committee (CSRC).
Reason R: The CSR Committee monitors CSR policy of the company.
In the light of the above statements, choose the most appropriate answer from the options given below
