The Government could soon make quoting of Aadhar number compulsory for key managerial personnel and directors in regulatory filings under the Companies Act.
Steps are being taken for implementation of Aadhar requirement under the Companies Act. The Corporate Affairs Ministry has already asked individual stakeholders to obtain Aadhar at the earliest for “integrating their details with MCA21”.
MCA21 is the portal through which filings required under the Companies Act are submitted to the Ministry.
Aadhar Card to be Mandatory for Filing under Companies Act:
According to a source, the Ministry has started work for implementing an illustrative framework. It would make quoting of Aadhar Compulsory in the filings made under the Companies Act.
“We will roll it out pretty fast. It will be done in a phased manner. The idea is to have a system in place which would help in identifying the stakeholders. For the ones, whose name come up in the filings made through MCA21.”
The Ministry will work out a separate system for foreign entities. There are more than 16 lakh registered companies. While asking individual stakeholders to obtain Aadhar at the earliest, the Ministry had emphasised that information in Aadhar should be in sync with PAN (Permanent Account Number). In other words, the details in Aadhar should not be different from the details as per their PAN.
This means that directors and founders of 16 lakh registered companies will be required to mention their Aadhar card numbers while filing any declarations under Companies Act.
Each and every Director, Board member, Founder, Investor, Chartered Accountant, Company Ssecretaries, Cost Accountants and others, will be required to have an Aadhar Card in near future.
Why is Aadhar being made Compulsory for Filing Under Companies Act?
The move is primarily aimed at tackling the issue of bogus identities. It comes at a time when authorities are bolstering measures to deal with the menace of shell companies. Those particularly suspected for laundering illicit funds.
Authorities have found discrepancies in personal details provided by individuals in the regulatory filings. According to the source, having Aadhaar number along with the filings would help ascertain the authenticity of the individuals.
What is Companies Act?
The Companies Act 2013 is an Act of the Parliament of India which regulates incorporation of a company, responsibilities of a company, directors, dissolution of a company.
The 2013 Act is divided into 29 chapters containing 470 sections as against 658 Sections in the Companies Act, 1956 and has 7 schedules.
The Act has replaced The Companies Act, 1956 (in a partial manner) after receiving the assent of the President of India on 29 August 2013. The Act came into force on 12 September 2013 with few changes like earlier private companies maximum number of member was 50 and now it will be 200.
A new term of “one person company” is included in this act that will be a private company and with only 98 provisions of the Act notified. A total of another 184 sections came into force from 1 April 2014.
The notice issued earlier this month said…
“When implemented, all MCA21 services shall be available based on Aadhaar-based authentication only.”
The Ministry of Company Affairs thereafter published a notification for exempting private companies from the ambit of various sections under the Companies Act.
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