Skip to content

CA Foundation · Business Laws · The Companies Act, 2013

Rohit Agarwal, aged 45, has never held any directorship. He wants to be appointed as a director of Sunrise Components Ltd, a public company. Before the appointment, which of the following must he necessarily have?

Rohit must first obtain a Director Identification Number (DIN). The Companies Act requires every person intending to be appointed as a director to hold a DIN allotted by the Central Government. Professional qualification, business experience or a fixed shareholding is not a statutory condition for becoming a director.

  1. AA Director Identification Number (DIN)Correct
  2. BA certificate of practice as a company secretary
  3. CAt least 10 years of experience in business
  4. DA minimum shareholding of Rs 1,00,000 in the company

Explanation

Every individual who is to be appointed as a director must hold a Director Identification Number allotted by the Central Government. The Act does not require professional qualifications, years of experience or a share qualification unless the articles prescribe a share qualification. The articles are not mentioned here, so the shareholding option is not a statutory requirement.

Did you get it right without looking?

One question tells you little. A timed set on The Companies Act, 2013 shows your real accuracy, how long you take and where you lose marks.

Practise The Companies Act, 2013Free diagnostic mock

More The Companies Act, 2013 questions