Amended and updated notes on section 154 of Companies Act 2013. Detail discussion on provisions and rules related to allotment of Director Identification Number.
Chapter XI (Sections 149–172) of the Companies Act, 2013 (CA 2013) deals with the provisions related to appointment and qualifications of directors. Section 154 of CA 2013 provides for Allotment of Director Identification Number.
Recently, we have discussed in detail section 153 (Application for allotment of Director Identification Number) of CA 2013. Today, we learn the provisions of section 154 of Companies Act 2013.
The provisions of section 154 are effective from 1-April-2014. You may refer Notification No. S.O. 902(E) issued dated 27-03-2014. In this article, you will learn detail of the provisions of section 154 of the Companies Act 2013 read with the Companies (Appointment and Qualification of Directors) Rules, 2014.
Director Identification Number i.e. DIN is a unique 8 Digit number compulsorily required for becoming a director in a company. According to section 154 of CA 2013, the Central Government shall allot a Director Identification Number (DIN) to an applicant within one month from the receipt of the application under section 153 of the Companies Act, 2013. In other words, the DIN shall be allotted by the Office of Regional Director (Northern Region), Ministry of Corporate Affairs.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XI |
| Chapter Name | Appointment and Qualifications of Directors |
| Section No. | 154 |
| Section Name | Allotment of Director Identification Number |
| Monthly Updated Edition | Company Law PDF |
Manner of Allotment of DIN by Central Government
The manner of allotment of DIN have been provided in Rule 9 of the Companies (Appointment and Qualification of Directors) Rules, 2014 and the same has been site below:
Provisional DIN [Rule 10 (1)]:
The provisional Director Identification Number shall be generated by the system automatically on the submission of the application i.e. eForm DIR-3 on the MCA portal and payment of the requisite amount of fees i.e. ₹500 through online mode.
Approval/Rejection of DIN Application [Rule 10 (2)]:
The applications received for allotment of DIN shall be processed by the Central Government. Thereafter, the CG shall either approve or reject the application made in eForm DIN-3.
In case of approval, the CG communicate to the applicant along with the DIN allotted by way of a letter by post or electronically or in any other mode. Such communication shall be made within a period of one month from the receipt of such application.
Defective/Incomplete Application [Rule 10 (3)]:
The Central Government shall examine the application of allotment made in eForm DIN-3. On examination, if CG finds that the application is incomplete or defective in any respect, then the CG shall give intimation to the applicant to rectify such defects or incompleteness.
Such intimation shall be given by CG by placing it on the website and by email to the applicant directing the applicant to rectify such defects or incompleteness by resubmitting the application within a period of 15 days of such placing on the website and email.
However, the Central Government shall do either of the following–
- Fresh Application for DIN: The CG shall reject the application and direct the applicant to file fresh application with complete and correct information, where the defect has been rectified partially or the information given is still found to be defective;
- Invalid Application: The CH shall treat and label such application as invalid in the electronic record in case the defects are not removed within the given time; and
- Communicate Applicant: The CG shall inform the applicant either by way of letter by post or electronically or in any other mode.
Provisional DIN Lapsed [Rule 10 (4)]:
If the application for DIN has been rejected by the CG or the application in treated as invalid, the provisional DIN so allotted by the system shall get lapsed automatically.
In case of rejection, the application fee paid for DIN-3 shall neither be refunded nor adjusted with any other application. In other words, if your provisional DIN is lapsed due to rejection or invalidation of the application then the fee paid shall not be refunded to you in any circumstances.
Previously Allotted DIN [Rule 10 (5)]:
If any individual has been allotted a DIN by CG before the commencement of the Companies (Appointment and Qualification of Directors) Rules, 2014, then such previously allotted DIN shall be deemed to have been allotted to him/her under these rules.
Validity of DIN [Rule 10 (6)]:
The Director Identification Number so allotted under these rules is valid for the life-time of the applicant and shall not be allotted to any other person.
Section 154 of Companies Act 2013: Allotment of Director Identification Number
Section 154 shall come into force on 1st April, 2014 vide Notification No. S.O. 902(E) issued dated 27.03.2014.
The Central Government shall, within one month from the receipt of the application under section 153, allot a Director Identification Number to an applicant in such manner as may be prescribed.