Now, Ministry of Corporate Affairs introduced relatively easy and online e – form for surrendering director identification.
One of most popular and commented post on this blog till today was this earlier post talking about cancellation or surrender or deactivation of director identification number. Until 21st June 2017, surrendering director identification number was nightmarish for innocent applicants. Many of them had sleepless night, particularly during recent demonetization period, fearing misuse of their director identification number. Earlier, applicants had to approach a company to file their application for surrendering director identification numbers. Logically, a company could not help any outside applicant.
Legal Provision and Procedures
According to Rule 11(f) of the Companies (Appointment and 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 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. Before deactivation of any DIN in such case, the Central Government shall verify e-records.
Application for surrender of DIN in e-form DIR-5 can be filed with any reason such as DIN is unused and not intended for future reference also or multiple DINs are allotted to same person or DIN holder is no more/has become of unsound mind or insolvent etc. This application will further be processed by RD-north region.
The form will be processed in Non STP mode. Upon successful approval of the form the status of the surrendered DIN will be de-activated which will be the final disabled status of the DIN.
Contents of Form
Newly introduced e – form DIR – 5 required following details –
- Applicant Name,
- Father’s Name
- Select any of the following reason –
- Having multiple DINs
- DIN was obtained in a wrongful manner or by fraudulent means
- Death of the concerned individual
- Concerned individual is declared as a person of unsound mind by a competent court
- Concerned individual has been adjudicated as insolvent
- Concerned individual is/was not associated with any company/LLP
- Whether applicant is retaining any DIN and detail of oldest DIN
- Number of DIN being surrendered and their details
- Contact details of applicant
- Who is signing application? In case of death, unsound mind or insolvency; DIN holder may not sign the application. In such cases, application shall be signed by a relative or may be by bankruptcy trustee.
- Proof of Identity (it must preferably be PAN, in my opinion) and address.
- In case of multiple DINs, Affidavit including declaration that retained DIN will be updated with all associated CIN/LLPIN
- In case of unsound mind and insolvency, copy of court order declaring HIN holder insolvent/unsound mind
- In case of death, copy of death certificate
Please note, in case of proofs which are in languages other than Hindi / English, the proofs should be translated in Hindi / English from professional translator carrying his details (name, signature, address) and seal. In the case of foreign nationals, translation done by the notary of home country is also acceptable.
If eForm is digitally signed by a Chartered Accountant or Cost Accountant or Company Secretary (CS) (in whole time practice) then the supporting documents attached shall be self-attested by the applicant.
If eForm is digitally signed by secretary (who is member of ICSI), in whole time employment or director of existing company then the supporting documents attached shall be either self-attested by the applicant or duly attested by either Public Notary or a Gazette Officer of a Government. The attesting authority must indicate the following while attesting the documents:- (i) Signatures; (ii)Name in full in Capitals; (iii) Registration No.; and (iv) Seal/ Stamp.
In case, the director/ designated partner is residing outside India, then the attached supporting documents should be attested by the Consulate of the Indian Embassy, Foreign public notary.
Where applicant is not signing application himself, a practicing professional shall digitally sign a certificate inbuilt itself in the Form.
can we surrender a din of director if he is disqualified due to non filling of form dir-3 kyc
If first DIN is deactivated and 2nd DIN is issued on same PAN as processed by DIN cell, in such case will the innocent applicant be made liable for glitches in processing system which faile to catch data of PAN from DIN database?
When these two DIN were issued.
During initial years of DIN, provisional DIN got alloted on submission of online application subject to verification of documents submitted physically. Such DIN if deactivated, nothing to do.
PAN was not linked with DIN in Initial years.
Anyway such deactivated DIN do not create any issue unless applicant was not innocent enough.