Corporate Affairs Ministry to collect passport details of company directors
In a bid to prevent defaulters from fleeing the country, the Ministry for Corporate Affairs is mulling a proposal to collect passport details of individuals permitted to serve as directors on the board of companies.
The move comes after the likes of Nirav Modi and Mehul Choksi fled the country.
Those seeking a Director Identification Number (DIN) would also have to submit their passport details. The DIN is an 8 digit unique identity provided by the Corporate Ministry to those appointed as directors of a company.
The ministry proposes to modify the DIN application form in which a column would be included where the passport details would have to be provided. The move comes in the aftermath of the Union Finance Ministry making it mandatory for those borrowers taking loans of above Rs 50 crore to provide passport details.
In case a director does not possess a passport, he or she would then have to file a declaration to this effect.