Surrender of Director Identification Number (DIN) By CS Jay Jain


Dear Professional Colleagues,

It has come to my notice that, there is a general misconception among professionals concerning the surrender of DIN in a case where a Director holds multiple DINs’ and the old DIN has never been used but the new DIN is already in use or has been used to hold directorship, thereby creating a dilemma due to the rule of retaining the oldest DIN and surrendering the new one.
 
So I thought of coming up with the hereinbelow my understanding:
 
Q. Whether the requirement of an Affidavit by the Director, stating that the DIN has never been used to hold directorship, is applicable in the case of Directors holding Multiple DINs also?
No.
 
Logic:

Extract of Rule 11(f) of Companies (Appointment & Qualification of Directors) Rules, 2014:

“on an application made in Form DIR-5 by the DIN holder to surrender his or her DIN along with a declaration that he has never been appointed as a 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.”
 
In the above extract, it shall be noted that the aforesaid provision is applicable only in the cases where Directors have single DIN and they wish to surrender the same. The Rules nowhere talks about the scenario of Multiple DINs’.
 
Also, once the option of “Multiple DIN” is selected in Field (3) of Form DIR-5, an additional attachment requirement emerges in the Form stating that “Affidavit including declaration that retained DIN will be updated with all associated CIN/LLPIN”. Nowhere, it requires an Affidavit stating that DIN has never been used for filing of any document with any authority.
 
So, we can conclude that though the new DIN is already in use to hold directorship, it still can be surrendered by filing Form DIR-5 and Regional Director, Northern Region (DIN Cell) shall migrate the directorships held by that DIN holder to old DIN and shall cancel the new DIN.
 
Note: The above article is based on knowledge and research of writer and so it must be treated as an opinion and not necessary as a Fact.

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  • WE HAVE INCOPORATED TWO COMPANY AT THE SAME TIME NAMALY ABC PRIVATE LIMITED as on 28.03.2018 AND XYZ PRIVATE LIMITED as on 03.04.2018

    13-05-2019 / 01:25:35 PM
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  • In practical asspects, may i know is there any difficulties in DIN Surrender process? Like Departmental issues or approval issues?

    16-05-2019 / 02:43:40 PM
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