Ministry of Corporate Affairs (MCA) has issued several amendments in certain rules made under Companies Act, 2013 on May 07, 2018. This Article made an attempt to analyse important changes in Companies (Appointment and Qualification of Directors) Rules, 2014 which was last amended by the Ministry of Corporate Affairs in New Delhi dated 22.01.2018.
The Central Government made Companies (Appointment and Qualification of Directors) Second Amendment Rules 2018, to further amend the Companies (Appointment and Qualification of Directors) Rules, 2014. Ministry of Corporate Affairs issued a Notification in New Delhi, the 7th May, 2018 G.S.R. 430 (E). The Amendment made is as follows:
- In the Companies (Appointment and Qualification of Directors) Rules, 2014, rule 5 shall be numbered as sub-rule (1) thereof, and after sub-rule (1) as so numbered, the following sub-rule shall be inserted, namely:-
“(2) None of the relatives of an independent director, for the purposes of sub-clauses (ii) and (iii) of clause (d) of sub-section (6) of section 149,- (i) is indebted to the company, its holding, subsidiary or associate company or their promoters, or directors; or (ii) has given a guarantee or provided any security in connection with the indebtedness of any third person to the company, its holding, subsidiary or associate company or their promoters, or directors of such holding company, for an amount of fifty lakhs rupees, at any time during the two immediately preceding financial years or during the current financial year.”
- In the principal rules, in rule 16, for the word “shall”, the word “may” shall be substituted.
To go through a summary of all the Rules notified by MCA read: Companies Amendment Act 2017-Summary of Rules Notification.
Our team at is trained to support you with any kind of help regarding the Companies Amendment Act 2017 as well as Company Registration of all kind.