Last updated: June 22nd, 2019 10:28 AM

Director of ACTIVE Non-Compliant Company

The Ministry of Corporate Affairs has recently notified the Companies (Appointment and Qualification of Directors) Rules, 2014. As per the new rules, Directors of companies that have not filed ACTIVE eForm will be marked as “Director of ACTIVE non-compliant company”. In this article, we look deeper into this new regulation.

ACTIVE eForm

As per MCA rules notified earlier, all companies incorporated before 1.1.2018 are required to file ACTIVE eForm before 15th June 2019. Failure to file ACTIVE eForm could lead to a penalty of Rs.10,000 and the company being marked as ACTIVE Non-Compliant.

MCA Notification

As per the latest notification from MCA, the tagging of non-compliant Companies/Directors for not filing eForm Active (INC-22A) is complete. The form (ACTIVE) has since been made available for filing purposes. Now, the ACTIVE Form is available and can be filed with a fee of INR 10000. Stakeholders are advised to download the latest version for filing purposes.

Director of ACTIVE Non-Compliant Company

Under the new regulations, Directors of companies that have not filed ACTIVE eForm for any of the company will be marked as Director of ACTIVE Non-Compliant Company. Once the marking is made, they will be able to change it to Director of ACTIVE compliant company only after filing all overdue MCA annual returns. Thus, its important for all Directors to ensure that they are maintaining compliance for all companies in which they are involved - or pay stringent penalties in the future.

Companies (Appointment and Qualification of Directors) Rules

The MCA on 16th May 2019 has released the Companies (Appointment and Qualification of Directors) Rules. The rules are reproduced below for ready reference:

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MINISTRY OF CORPORATE AFFAIRS

NOTIFICATION

New Delhi, the 16th May, 2019

G.S.R. 368(E).—In exercise of the powers conferred by the second proviso to sub-section (1), subsection (4), clause (f) of sub-section (6) of section 149, sub-sections (3) and (4) of section 150, section 151, sub-section (5) of section 152, section 153, section 154, section 157, section 160, sub-section (1) of section 168 and section 170 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Appointment and Qualification of Directors) Rules, 2014, namely:— 1. (1) These rules may be called the Companies (Appointment and Qualification of Directors) Second Amendment Rules, 2019. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Companies (Appointment and Qualification of Directors) Rules, 2014, after rule 12A, the following rule shall be inserted, namely:- ‘12B. Directors of company required to file e-form ACTIVE.- (1) Where a company governed by Rule 25A of the Companies (Incorporation) Rules, 2014, fails to file the e-form ACTIVE within the period specified therein, the Director Identification Number (DIN) allotted to its existing directors, shall be marked as “Director of ACTIVE non-compliant company”. (2) Where the DIN of a director has been marked as “Director of ACTIVE non-compliant company”, such director shall take all necessary steps to ensure that all companies governed by rule 25A of the Companies (Incorporation) Rules, 2014, where such director has been so appointed, file e-form ACTIVE. (3) After all the companies referred to in sub-rule (2) file the e-form ACTIVE, the DIN of such director shall be marked as “Director of ACTIVE compliant company”.’.

[F. No. 1/22/2013-CL-V] K. V. R. MURTY, Jt. Secy.

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