SURRENDER OF DIN - To Avoid Filing of DIR-3 KYC ?
SURRENDER OF DIN……..
Short Summary:
As per amendment every
person holding DIN have to file e-form DIR-3 KYC every financial year till 30th
April. Even if such person not holding any Directorship in any company and not
intent to get appointment in future still required to file e-form DIR-3 KYC.
However, many
professionals/ individuals having question in mind i.e. “Whether
a person can surrender his DIN” in case he don’t want to use it in future.
Legal Language:
As per Section 153:
Every individual intending
to be appointed as director of a Company shall make an application for
allotment of Director Identification Number to the Central Government in such
form and manner and along with such fees as may be prescribed.
As per Section 155:
Prohibition to Obtain More than One Director Identification
Number
No individual, who has
already been allotted a Director Identification Number under section 154, shall apply for,
obtain or possess another Director Identification Number.
Rule 11 Surrender of DIN:
The Central Government or Regional
Director (Northern Region), Delhi or any officer authorized by the Regional
Director may, upon being satisfied on verification of particulars or
documentary proof attached with the application received along with fee as specified in Companies (Registration Offices and
Fees) Rules, 2014] 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:
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 DIN has never been used for filing of any document with any authority, the Central Government may deactivate such DIN.
As per Section 159:
If any individual or director of a Company,
contravenes any of the provisions of Section 153, such individual or director
of the Company shall be punishable with
§ imprisonment
for a tem which may extend to Six month or
§ with
fine which may extend to Rs. 50,000/- and
§ Where
the contravention is a continuing one, with a further fine which may extend to
Rs. 500/- for every day after the first during which the contravention
continues.
Food for Thought:
A.
Whether an individual
(DIN holder) can surrender his DIN, If Such DIN never used?
B.
Whether an individual
(DIN holder) can surrender his DIN, If Such person not holding any directorship
at present, but held directorship in past?
Discussion on Provisions:
As per Section 155, it is
clear that if a person holding DIN then such person can’t apply for another
DIN. If he does so It shall be punishable u/s 159 of Companies Act, 2013.
Grounds for Surrender of DIN:
Regional Director can cancel
/ surrender DIN on the basis of situation mentioned in Rule 11.
Rule 11 (a-e) mentioned
the situation for surrender of DIN Like (unsound mind, Death, Insolvent etc).
However, Rule 11(f) states that “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 DIN has never been used
for filing of any document with any authority,
the Central Government may deactivate such DIN”
Note:
As per Rule 11(f) - when a person made application in DIR-5
for surrender of his DIN to RD has to ensure following conditions:
-
That he has never been appointed as director in
any company; and
-
The said DIN never been used for filing of any
document with any authority.
As
per rule 11(f), a person can apply for surrender of DIN only in the situation
when “DIN
is unused and never used for appointment as director in any Company”
(except situations like unsound mind, death, and insolvent).
Therefore,
one can opine that, if a person held directorship in any company during his
life using such DIN, that DIN can’t be surrender by filing of e-form DIR-5.
(Author
– CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice
from Delhi and can be contacted at csdiveshgoyal@gmail.com). Disclaimer: The entire
contents of this document have been prepared on the basis of relevant
provisions and as per the information existing at the time of the preparation.
Although care has been taken to ensure the accuracy, completeness and
reliability of the information provided, I assume no responsibility therefore.
Users of this information are expected to refer to the relevant existing
provisions of applicable Laws. The user of the information agrees that the
information is not a professional advice and is subject to change without
notice. I assume no responsibility for the consequences of use of such
information. IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT,
SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION
WITH THE USE OF THE INFORMATION
so what is the procedure or when one can surrender single din??
ReplyDeletea person can't surrender single DIN untill unless unsound mind, insolvent, death case.
DeleteIf one hold two DIN one for Company and other for LLP, then what to do?
ReplyDeleteA director holds 2 din. His old DIN is not used and new DIN is reflecting in 3 companies.
ReplyDeleteNow while filing DIR-5, it shows error that delete new DIN. Now how to update DIN in other companies where new DIN is showing.
Also DIN which is used can be surrender.
If person not holding any directorship at present, but held directorship in past?
ReplyDeleteWhat can we do in this situation?
Should we need to file KYC or by non filing of KYC ,DIn will automatically deactivated.
How to remove deceased partner from llp which din has been deactivate due to non filing of dir 3 kyc
ReplyDeleteA DIRECTOR HOLDS 2 DIN. HIS OLD DIN IS USED AND KYC COMPLETE AND NEW DIN KYC NOT COMPLETE BUT USE IN NEW COMPANY INCORPORATED 2017.
ReplyDeleteTHAN NEW DIN DEACTIVATE
ALSO NEW DIN SURRENDER PROCESS
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