As per Section 153 of Companies Act 2013, every individual intending to be appointed as director of a company shall make an application for allotment of Director Identification Number or DIN to the central government in e-form DIR-3.
One person should obtain one Director Identification Number or DIN.
In certain cases like death of the director or DIN allotted more than one or acquired in wrongful manner, DIN can be cancelled by government.
In this article we will let you know when a Director Identification Number can be cancelled and how to surrender or cancel DIN.
AS per rule 11 of Companies (Appointment and Qualification of Directors) Rules, 2014, the Central Government or Regional Director (Northern Region), Noida or any officer authorized by the Regional Director may, upon being satisfied on verification of particulars or documentary proof attached with the application received from any person, cancel or deactivate the DIN in case;
(a) the DIN is found to be duplicated in respect of the same person provided the data related to both the DIN shall be merged with the validly retained number;
(b) the DIN was obtained in a wrongful manner or by fraudulent means;
(c) of the death of the concerned individual;
(d) the concerned individual has been declared as a person of unsound mind by a competent Court;
(e) if the concerned individual has been adjudicated an insolvent:
Provided that before cancellation or deactivation of Director Identification Number an opportunity of being heard shall be given to the concerned individual;
(f) On an application made in Form DIR-5 by the DIN holder to surrender his or her DIN along with declaration that he has never been appointed as director in any company and the said Director Identification Number has never been used for filing of any document with any authority, the Central Government may deactivate such Director Identification Number.
Provided that before deactivation of any Director Identification Number in such case, the Central Government shall verify e-records.
“wrongful manner” means if the Director Identification Number is obtained on the strength of documents which are not legally valid or incomplete documents are furnished or on suppression of material information or on the basis of wrong certification or by making misleading or false information or by misrepresentation.
“fraudulent means” means if the DIN is obtained with an intent to deceive any other person or any authority including the Central Government.
Application DIR-5 surrender or cancellation of Director Identification Number or DIN has to be attached with following documents;
- In case of Indian National, Self attested copy of Income tax Permanent Account Number Card as Proof of Identity.
- In case of foreign nationals and Non Resident Indians, instead of PAN card copy, self attested passport copy has to be attached.
- Self attested copy of Voter’s identity card or Passport or Driving license or Electricity bill or Telephone bill or Bank account statement as Proof of residence.
- Affidavit stating that he has never been appointed as director in any company and the said DIN has never been used for filing of any document with any authority.
DIR-5 is a physical form which cannot be uploaded at MCA site. The applicant is required to file it as an attachment to e-form RD-1.
DIR-5 has to be certified either by a Company Secretary in practice or Chartered Accountant in practice or Cost Accountant in practice Or Managing Director or Director or Secretary of the company.
