Aadhaar Card Mandatory for Joining a Company’s Board

The government has made the biometric authentication using Aadhaar mandatory after facing several scenarios of fake identity theft—including becoming a director on a board of the company or for issuing its returns by company secretaries and chartered accountants—for Companies Act-related transactions.

Aadhaar Card Mandatory for Joining a Company's Board

As per the sources, the Ministry Of Corporate Affairs has encountered several instances where people have established a Director Identification Number or have been chosen as directors on boards of the company without their consent, a necessity for connecting a board, as their signatures were copied.

Consequently, in the near future, anyone looking for a Director Identification Number will have to authenticate using biometric devices and fill up the online form that can soon be connected to PCs. In the same way, anyone chosen by the banks or government and financial institutions on boards of the company will have to provide biometric authentication. A parallel setup for company secretaries and CAs is also being operated out, confirmed the source.

A squad from Infosys has been assigned with placing in the new machine that will be introduced in stages, initiating with the allocation of Director Identification Number. Progressively over a period of couple of years, it will be extended to involve all work related to MCA.

There will be exclusions for non-residents and others, who are not qualified to get Aadhaar such as those people whose iris or fingerprints are not able to capture. MCA considers that the projected system does not encounter any issues since the recent order of the Supreme Court on Aadhaar as the system was destined for authentication. According to sources, the Supreme court had itself recommended that mobile connections be confirmed using Aadhaar and tax department as well as the banks have also been permitted to use the distinctive identification number.

From 2017, the income tax department has also made Aadhaar compulsory for issuing permanent account numbers since it targets individuals using numerous PANs, which is not legal, to avoid from taxes. Though this move was disapproved, the government thinks that employment of UID can aid in enhancing compliance across various sectors.