Director Identification Number (DIN) surrender is a crucial action that frequently arises after a company’s strike off. DIN is a unique identifier assigned to directors, and it is essential to understand the process and implications of its surrender. In this blog we will gain in depth knowledge regarding surrender of DIN after strike off of Company.
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Meaning of Director Identification Number
The Director identifying Number (DIN) is an exclusive identifying number allocated to an individual seeking to assume the role of a director inside a company. The purpose of this mechanism is to monitor the actions of directors inside corporate organizations, hence promoting openness and accountability in their respective positions. The numerical value holds significant importance in ensuring adherence to legal and regulatory standards and is frequently necessary for a multitude of corporate transactions and documentation.
DIN Surrender
The cancellation or deactivation of the Director Identification Number (DIN) may be conducted by the Central Government, the Regional Director (Northern Region) in Delhi, or any authorized officer designated by the Regional Director. DIN surrender fees will be incurred. This action can be taken after a thorough examination of the information and supporting documents provided in the application, along with the payment of the prescribed fee as outlined in the Companies (Registration Offices and Fees) Rules of 2014.
Grounds for DIN Surrender
In accordance with the stipulations outlined in Surrender of DIN Section 153 of the Companies Act, with Rule 11, an individual can surrender their Director Identification Number (DIN) based on the following circumstances. There are several circumstances in which the Director Identification Number (DIN) may be subject to modification or revocation. These include:-
- The discovery of duplicate DINs for the same individual, in which case the data associated with both DINs will be consolidated under the validly retained number.
- The acquisition of a DIN through improper or fraudulent means.
- The demise of the individual in question.
- The declaration by a competent court that the individual is mentally incapacitated.
- If the individual in question has been legally determined to be insolvent
- In accordance with the provisions outlined in DIN surrender Form DIR-5, a Director Identification Number (DIN) holder may apply to voluntarily surrender of DIN. This application must be accompanied by a declaration stating that the individual has never been appointed as a director in any company and that the DIN in question has never been utilized for the submission of any documents to any governing authority. Upon receipt of this application, the Central Government reserves the right to deactivate the DIN in question.
Can an individual seek for the surrender of their Director Identification Number (DIN) after striking off their company?
To answer the questions above, we need to understand the reasons for surrender of DIN under companies Act, 2013, which are listed above. As the Honourable Regional Director for the Northern Region, have the authority to accept any person’s request to give up their DIN under Rule 11. Rule 11 says that a DIN can be given up for six distinct reasons.
Find the answer; we must look at ground No. vi. Rule 11(f) says that a person who fills out a DIR-5 form to return his DIN to the RD has to make sure that he has never been a business director and that his DIN has never been used to file a document with any government agency. According to the above rules, a person can only apply to give up their DIN if their “DIN is useless and has never been used for appointment as a director in any company” (except in cases of mental illness, death, or being bankrupt).
So, one could say that a DIN cannot be given up before death, insanity, etc. if a person used it to be a director of a company during his life. An individual is unable to relinquish their Director Identification Number (DIN) after the act of striking off or resigning from the company. If an individual secures a position at a company, the surrender of their Director Identification Number (DIN) is only permissible upon their demise, or the reasons as specified above. Ensure compliance with the rules of the Companies Act, 2013, individuals are obligated to submit the DIR-3 KYC annually prior to their demise.
Conclusion
In conclusion, while it is possible to surrender of DIN after strike off of Company, the procedure requires compliance with regulatory requirements and may have consequences for the individual’s future directorships. When thinking DIN surrender in such circumstances, it is essential to obtain legal advice and follow the correct procedure.
