Recently, we have discussed the provisions related to application for Director Identification Number (DIN) and allotment of DIN as per section 153 and section 154 respectively. Today, we shall discuss the remaining provisions related to DIN under sections 155 to 159 of the Companies Act, 2013.
Accordingly, you will learn provisions related to Prohibition to obtain more than one Director Identification Number, Director to intimate Director Identification Number, Company to inform Director Identification Number to Registrar, Obligation to indicate Director Identification Number and Punishment for contravention of those provisions.
Prohibition to obtain more than one DIN by Directors
Commencement of Section 155
Section 155 of the Companies Act, 2013 came into force from 1st April, 2014 vide Notification No. S.O. 902(E) issued dated 27-03-2014. This section provides for Prohibition to obtain more than one Director Identification Number.
More than One DIN
In compliance with the provision of section 155 of the Companies Act, 2013 (CA 2013), no individual, who has already been allotted a Director Identification Number (DIN) under section 154, shall apply for, obtain or possess another DIN.
In other words, you are not allowed to obtain two or more DIN irrespective of directorship in various companies. Thus, you should have only one DIN for directorship and you shall not apply for another DIN if you have already been allotted Director Identification Number.
Corresponding Sections
Section 155 of CA 2013 corresponds to Section 266C of the Companies Act, 1956 i.e. prohibition to obtain more than one DIN. The provisions of both sections are same i.e. there is no difference between the provisions of section 266C of the Companies Act, 1956 and section 155 of the Companies Act, 2013.
Director to intimate Director Identification Number
Commencement of Section 156
Section 156 of the Companies Act, 2013 came into force on 1st April, 2014 vide Notification No. S.O. 902(E) issued dated 27-03-2014. This section provides for Director to intimate Director Identification Number.
Intimation of DIN to Companies
Section 156 of the CA 2013 provides that every existing director shall, within one month of the receipt of Director Identification Number from the Central Government, intimate his Director Identification Number to the company or all companies wherein he is a director.
Corresponding Sections
Section 156 of CA 2013 corresponds to Section 266D of the Companies Act, 1956 i.e. obligation of director to intimate DIN to concerned company or companies. However, the provisions of both sections are same and there is no difference between the provisions of section 266D of the Companies Act, 1956 and section 156 of the Companies Act, 2013.
Company to inform Director Identification Number to Registrar
Commencement of Section 157
Section 157 of the Companies Act, 213 came into force on first day of April, 2014 vide Notification No. S.O. 902(E) issued dated 27th March, 2014. This section provides for Company to inform Director Identification Number to Registrar.
Intimation of DIN to Registrar within Time
Every company shall, within 15 days of the receipt of intimation under section 156, furnish the Director Identification Number of all its directors to the Registrar or any other officer or authority as may be specified by the Central Government with such fees as may be prescribed or with such additional fees as may be prescribed within the time (i.e. 270 days) specified under section 403 and every such intimation shall be furnished in such form and manner as may be prescribed.
Punishment to Companies and Officials
If a company fails to furnish DIN under sub-section (1) of section 157, before the expiry of the period specified under section 403 (i.e. 270 days) with additional fee:
- The company shall be punishable with fine which shall not be less than ₹25000 but which may extend to ₹100000; and
- Every officer of the company who is in default shall be punishable with minimum fine of ₹25000 and Maximum fine of ₹100000.
Corresponding Sections
Section 157 of the CA 2013 corresponds to Section 266E of the CA 1956 i.e. obligation of company to inform DIN to Registrar. Intimation time has been increased to 15 days from one week as required under the Companies Act, 1956. Now, every Company shall intimate DIN of its Directors to Registrar within 15 days of the receipt of the same from the Directors instead of 1 week as provided under the Old Companies Act.
Obligation to indicate Director Identification Number
Commencement of Section 158
Section 158 of the Companies Act, 2013 came into force on 01/04/2014 vide Notification No. S.O. 902(E) issued dated 27/03/2014. This section provides for obligation to indicate Director Identification Number.
Mandatory to Mention DIN
Every person or company, while furnishing any return, information or particulars as are required to be furnished under CA 2013, shall mention the Director Identification Number in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any director.
Corresponding Sections
Section 158 of CA 213 corresponds to Section 266F of the Companies Act, 1956 i.e. obligation to indicate DIN. There is no difference between the provisions of section 266F of the Companies Act, 1956 and section 158 of the Companies Act, 2013.
Punishment for contravention of Sections 152, 155 and 156
Commencement of Section 159
Section 159 of the Companies Act, 2013 came into force on 01-04-2014 vide Notification No. S.O. 902(E) issued dated 27-03-2014. This section provides for punishment for contravention of sections 152, 155 and 156 of the CA 2013.
Punishment to Directors
If any individual or director of a company, contravenes any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be punishable with:
- Imprisonment for a term upto 6 Months; or
- Fine which may extend to ₹50000; and
Where the contravention is a continuing one, such director shall be punishable with a further fine which may extend to ₹500 for every day after the first during which the contravention continues.
Corresponding Sections
Section 159 of the CA 2013 corresponds to Section 266G of the Companies Act, 1956 i.e. Penalty for contravention of provisions of section 266A or section 266C or section 266D or section 266E.
Under the CA 2013, the punishment for contravention has included imprisonment upto 6 months also which was not present under the CA 1956. Further, the amount of fine has also been increased from ₹5,000 to ₹50,000 under the new CA 2013.