Rule 11 of the Companies (Appointment and Qualification of Directors) Rules, 2014 provides for Cancellation or surrender or Deactivation of Director Identification Number and Rule 12 lays down the procedure for intimation of changes in particulars specified in DIN Application.
Recently, we have discussed various provisions related to Director Identification Number (DIN) viz. application for DIN u/s 153, allotment of DIN u/s 154 and penal provisions of DIN etc.
Cancellation or surrender or Deactivation of DIN:
As per Rule 11 of the Companies (Appointment and Qualification of Directors) Rules, 2014, following are the procedure for cancellation or surrender or deactivation of Director Identification Number.
The Central Government or Regional Director (Northern Region), Noida or any officer authorised 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 the following cases:
1) Duplicate DIN:
If the Director Identification Number 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;
2) DIN obtained by Fraud:
If the DIN was obtained in a wrongful manner or by fraudulent means;
As per explanation the term “wrongful manner” means if the DIN 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.
Whereas, the term “fraudulent means” means if the DIN is obtained with an intent to deceive any other person or any authority including the Central Government.
3) Death of DIN holder:
The death of the concerned individual;
4) Unsound Mind of DIN holder:
The concerned individual has been declared as a person of unsound mind by a competent Court;
5) Insolvency of DIN Holder:
If the concerned individual has been adjudicated an insolvent:
However, before cancellation or deactivation of DIN obtained by fraudulent manner, an opportunity of being heard shall be given to the concerned individual;
6) Surrender of DIN:
The Central Government may deactivate DIN on an application made in Form DIR-5 by the DIN holder to surrender his or her DIN.
Such application for surrender of DIN shall be made 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 shall verify e-records before deactivation of any DIN in such case.
If you not submit KYC details in e-form DIR-3-KYC or the web service DIR-3-KYC-WEB within stipulated time then CG or RD or any authorised officer shall deactivate your DIN.
The de-activated DIN shall be re-activated only after e-form DIR-3-KYC or the web service DIR-3-KYC-WEB is filed along with fee as prescribed under Companies (Registration Offices and Fees) Rules, 2014.
Intimation of changes in particulars specified in DIN Application
In case of any change in the particulars as stated in Form DIR-3, you should intimate such change to CG in eForm DIR-6 within 30 days of such change. Following are the procedure for intimation of changes in information related to Director Identification Number:
- Download DIR-6: The applicant shall download Form DIR-6 from the MCA portal and fill in the relevant changes, attach copy of the proof of the changed particulars and verification in the Form DIR-7 all of which shall be scanned and submitted electronically.
- Digital Sign: The form shall be digitally signed by a chartered accountant in practice or a company secretary in practice or a cost accountant in practice.
- Submit DIR-6: The applicant shall submit the Form DIR-6.
- CG inform Changes: The Central Government, upon being satisfied, after verification of such changed particulars from the enclosed proofs, shall incorporate the said changes and inform the applicant by way of a letter by post or electronically or in any other mode confirming the effect of such change in the electronic database maintained by the Ministry.
- Intimation to Registrar: The DIN cell of the Ministry shall also intimate the change(s) in the particulars of the director submitted to it in Form DIR-6 to the concerned Registrar(s) under whose jurisdiction the registered office of the company(s) in which such individual is a director is situated.
The concerned individual shall also intimate the change(s) in his particulars to the company or companies in which he is a director within 15 days of such change.