The Ministry of Corporate Affairs (MCA) has amended a key Rule to allow directors to update their KYC details, including official email addresses and mobile numbers, throughout the year.
This change in the Rule —the Companies (Appointment and Qualification of Directors) Rules, 2014–provides significant flexibility compared to the previous system, where updates could only be made during the annual KYC filing.
Previously, company directors were required to file their KYC annually, and any changes to their contact information could not be made until the following April. This often caused issues for directors who switched organizations or whose companies underwent restructuring, as their official contact details could become outdated.
Makarand M. Joshi of MMJC & Associates, a corporate compliance firm, highlighted that this amendment will greatly benefit professional directors who change positions mid-year. “The new MCA regulation ensures that directors can update their mobile numbers and email addresses in real-time, maintaining seamless communication and staying informed during organizational transitions,” Joshi said.
Directors must submit their KYC details to the Registrar of Companies using the DIR-3 KYC form annually, with no government fees charged for filing. The deadline for submission is September 30, and failure to meet this deadline results in the deactivation of the Director Identification Number (DIN), preventing the director from performing their duties until the DIN is reactivated. A late fee may apply for reactivation after the deadline.
This amendment by the MCA aims to enhance the efficiency and convenience of the KYC update process, ensuring directors remain connected and informed throughout the year, corporate observers said.