{"id":2656,"date":"2018-07-13T12:33:15","date_gmt":"2018-07-13T12:33:15","guid":{"rendered":"https:\/\/companyregistrationonline.in\/?p=2656"},"modified":"2021-01-07T08:06:29","modified_gmt":"2021-01-07T08:06:29","slug":"companies-appointment-directors-amendment-rules-2018","status":"publish","type":"post","link":"https:\/\/companyregistrationonline.in\/blog\/companies-appointment-directors-amendment-rules-2018\/","title":{"rendered":"The Companies (Appointment of Directors) Second Amendment Rules, 2018"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-1\" style=\"transform:translate3d(0,0,0);\"><p style=\"text-align: justify;\"><a href=\"http:\/\/www.mca.gov.in\">Ministry of Corporate Affairs<\/a> (MCA) has issued several amendments in certain rules made under the Companies Act, 2013 on May 07, 2018. This Article made an attempt to analyze important changes in Companies (Appointment of Directors) Rules, 2014 which was last amended by the Ministry of Corporate Affairs in New Delhi dated 22.01.2018.<\/p>\n<p style=\"text-align: justify;\"><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;If you want to apply for Company incorporation, you can go with Company Registration Online&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:4194817,&quot;3&quot;:&#091;null,0&#093;,&quot;12&quot;:0,&quot;25&quot;:&#091;null,0,0&#093;}\">If you want to apply for <strong><a href=\"https:\/\/www.legalraasta.com\/private-limited-company-registration\/\">Company incorporation<\/a><\/strong>, you can go with <strong><a href=\"https:\/\/companyregistrationonline.in\">Company Registration Online<\/a><\/strong><\/span><\/p>\n<p>Ministry of Corporate Affairs notified various Sections of the Companies Amendment Act, 2017 to further amend the Companies Act, 2013.\u00a0 Consequential amendment rules made are as follows:<\/p>\n<ul>\n<li><strong>Companies (Meetings of Board and its Powers) Amendment Rules 2018<\/strong><\/li>\n<\/ul>\n<ul>\n<li><strong>Companies (Audit and Auditors) Amendment Rules 2018<\/strong><\/li>\n<\/ul>\n<ul>\n<li><strong>Companies (Prospectus and Allotment of Securities) Amendment Rules 2018<\/strong><\/li>\n<\/ul>\n<ul>\n<li><strong>Companies (Appointment and Qualification of Directors) Second Amendment Rules 2018<\/strong><\/li>\n<\/ul>\n<ul>\n<li><strong>Companies (Share Capital and Debentures) Second Amendment Rules 2018<\/strong><\/li>\n<\/ul>\n<ul>\n<li><strong>Companies (Registration Offices and Fees) Second Amendment Rules 2018<\/strong><\/li>\n<\/ul>\n<ul>\n<li><strong>Companies (Specification of Definitions Details) Amendment Rules 2018<\/strong><\/li>\n<\/ul>\n<ul>\n<li><strong>Companies (Meetings of Board and its Powers) Amendment Rules, 2018<\/strong><\/li>\n<\/ul>\n<p>This article provides an overview of the\u00a0Companies (Appointment of Directors) Second Amendment Rules 2018.<\/p>\n<p style=\"text-align: justify;\">The Central Government made <strong>Companies (Appointment of Directors) Second Amendment Rules 2018,\u00a0<\/strong>to further amend the Companies (Appointment of Directors) Rules, 2014.\u00a0<strong><a href=\"http:\/\/www.mca.gov.in\">Ministry of Corporate Affairs<\/a><\/strong> issued a <a href=\"http:\/\/www.mca.gov.in\/Ministry\/pdf\/AppointmentDirectorsRules_07052018.pdf\">Notification in New Delhi, the 7th May 2018\u00a0<strong>G.S.R. 430 (E)<\/strong><\/a>.\u00a0\u00a0The Amendment made is as follows:<\/p>\n<ul style=\"text-align: justify;\">\n<li>In the Companies (Appointment 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:-<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">\u201c(2) None of the relatives of an independent director, for sub-clause (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.\u201d<\/p>\n<ul style=\"text-align: justify;\">\n<li>In the principal rules, in rule 16, for the word \u201cshall\u201d, the word \u201cmay\u201d shall be substituted.<\/li>\n<\/ul>\n<p>It is noteworthy that The Principal Rules were published in Government of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification G.S.R. 259(E), dated the 31st March 2014 and subsequently amended vide the following notifications:<\/p>\n<table style=\"height: 241px;\" border=\"0\" width=\"888\" cellspacing=\"0\">\n<colgroup width=\"104\"><\/colgroup>\n<colgroup width=\"112\"><\/colgroup>\n<colgroup width=\"137\"><\/colgroup>\n<tbody>\n<tr>\n<td style=\"text-align: center;\" align=\"left\" height=\"34\"><span style=\"font-family: Liberation Serif;\"><strong>Serial Number<\/strong> <\/span><\/td>\n<td style=\"text-align: center;\" align=\"left\"><strong><span style=\"font-family: Liberation Serif;\">Notification Number<\/span><\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\"><strong><span style=\"font-family: Liberation Serif;\">Notification Date<\/span><\/strong><\/td>\n<\/tr>\n<tr>\n<td align=\"center\" height=\"47\"><strong>1<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">G.S.R. 671(E)<\/td>\n<td style=\"text-align: center;\" align=\"left\">18th September 2014<\/td>\n<\/tr>\n<tr>\n<td align=\"center\" height=\"32\"><strong>2<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">G.S.R. 42(E)<\/td>\n<td style=\"text-align: center;\" align=\"left\">19th January 2015<\/td>\n<\/tr>\n<tr>\n<td align=\"center\" height=\"32\"><strong>3<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">G.S.R. 839(E)<\/td>\n<td style=\"text-align: center;\" align=\"left\">5th July 2017<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" align=\"center\" height=\"47\"><strong>4<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">G.S.R. 51 (E)<\/td>\n<td style=\"text-align: center;\" align=\"left\">22nd January 2018.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\">Related Topic:\u00a0\u00a0<strong><a href=\"https:\/\/companyregistrationonline.in\/blog\/chit-fund-company-and-its-registration-process\/\">Chit Fund Company and It&#8217;s registration process | Company Registration<\/a><\/strong><\/p>\n<p class=\"entry-title fusion-post-title\" data-fontsize=\"30\" data-lineheight=\"37\"><a href=\"https:\/\/www.legalraasta.com\/blog\/llp-better-private-limited-company\/\">Why LLP is better than Private Limited Company<\/a><\/p>\n<p style=\"text-align: justify;\">\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[557],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Companies (Appointment of Directors) Second Amendment Rules, 2018<\/title>\n<meta name=\"description\" content=\"This Article analyses important\u00a0changes in Companies (Appointment of Directors) Rules 2014 which was recently amended by MCA.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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