Please let me know that when the declaration u/s 274(1)(g) is required to be received from directors.
During the March Board Meeting, it can be received or only on the last date of Financial Year i.e. 31 March or in the month of April it can be received.
Before his/her appointment as per Rule 9 of Companies(Disqualification of Directors under section 274(1)(g) of the Companies Act, 1956) Rules, 2003.
Director: Every person who proposed as director in a public company shall file with the company a declaration in the prescribed form (FORM-DDA) stating that he is not disqualified as per section 274(1)(g). Rule 9 requires a director to file Form-DDA before his appointment or re-appointment.
As per the rule, every individual seeking appointment as a director of a new or an existing public company including re-appointment needs to file Form-DDA with the concern company before appointment or re-appointment, as the case may be. In case of an existing company, an individual being appointed as a director as an additional or in casual vacancy or under section 257 of the Act in any general meeting or being re-appointed as a director in any annual general meeting on retirement by rotation or cessation as an individual director has to file Form-DDA with the concern company in addition to other form(s), if any required under the Act prior to seeking appointment or re-appointment
Kindly also explain that "does it applicable on Pvt. Ltd Co's" and every year needs to be called from the directors of company for the purpose of auditors. Sir, this is a right practice.....
05 April 2012
I agree that it is not applicable for pvt companies.
BUT normally a statement as to the compliance with the section is provided in the audit report of pvt companies also.
" on the basis of written representations received from the directors as on 31 March....and taken on record by the Board of Directors, we report that none of the directors are dis qualified as on 31 March.....from being appointed as a director under section 274(1)(g) of the Companies Act 1956."
CAclubindia
