The effect of implementation of Companies Act 2013 is far reaching and has by far been historic. The Act contains diverse compliance requirements, which are still not clear to many businesses. In this Article, we will be highlighting 5 things directors should know about Companies Act 2013. 

1) Disclosure of Interest of Directors:

As per section 184(1) of Companies Act, Every director shall:

• At the first meeting of the Board in which he participates as a director; and thereafter
• At the first meeting of the Board in every financial year or
• Whenever there is any change in the disclosures already made, then at the first Board meeting held after such change, disclose his concern or interest in any company or companies or bodies corporate, firms, or other association of individuals which shall include the shareholding, in such manner as may be prescribed. Such disclosure has to be made in Form MBP-1 and filed with the ROC in Form MGT-14.

2) CIN Number to be mentioned on letter-heads,  Business cards, Invoices and other documents:

Every private limited company will have to mention its 21 digit CIN number in its letter-heads, invoices and other documents.

For more details, please visit : Impact of Companies Act on Private Limited Companies

3) DIN to be compulsorily mentioned with Director’s Signature:

Now, DIN to be specified with Director’s signature compulsorily. This is one of the various new compliance requirements that Companies Act, 2013 has introduced. Now, DIN has to be specified with Director’s Signature on all the documents the directors sign.

For more details, please visit: DIN to be mentioned with Director’s sign

4) One resident director compulsory on Board:

The 2013 Act has made a significant change in the manner in which boards of companies must be formed. It is mandatory that at least one director must be a resident in India for a minimum period of 182 days during the preceding calendar year. Moreover, all listed companies and certain other classes of companies as prescribed under delegated legislation would also need to have at least one woman director on their boards.

5) Meetings of the Board:

First Meeting of the Board must be held within 30 (Thirty) days of incorporation. For subsequent Board Meetings, the Board must meet at least 4 times a year and gap between two Board Meetings cannot exceed 120 days. However,  a One Person Company, small company and dormant company have the option for convening a Board Meeting at least once on every half of the calender year and gap between two meetings is not less than 90 days.

Hence, if you are a Director, then  make sure you are aware of t5hese provisions in order to keep your company in safe compliance harbor.

For a quick summary of Companies Act, 2013, please visit: FAQs on Companies Act, 2013

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