CS Divesh Goyal
Provisions related to Director Identification Number (DIN) Under Companies Act, 1956 and Under Companies Act, 2013
Companies Act, 1956
As per Section 266A of Companies Act, 1956: Every individual intending to be appointed as director of Company should obtain Director Identification Number (DIN).
As per Section 266C of Companies Act, 1956: No individual, who had already been allotted a Director Identification Number under Section 266B, shall apply, obtain or process another Director Identification Number.
As per Section 266G of Companies Act, 1956: If any individual or director, referred to in section 266A or section 266C, contravenes any of the provisions of those sections, every such individual or director or the company, as the case may be, who or which, is in default, shall be punishable with
- Fine which may extend to Rs. 5000/- (five thousand rupees only) and
- where the contravention is a continuing one, with a further fine which may extend to Rs. 500/- (five hundred rupees) for every day after the first during which the contravention continues.
Companies Act, 2013
As per Section 153 of Companies Act, 2013: Every individual intending to be appointed as director of a company shall make an application for allotment of Director Identification Number to the Central Government in such form and manner and along with such fees as may be prescribed.
As per Section 159 of Companies Act, 2013: If any individual or director of a company, contravenes any of the provisions of Section 153, such individual or director of the company shall be punishable with
- imprisonment for a tem which may extend to Six month or
- with fine which may extend to Rs. 50,000/- and
- Where the contravention is a continuing one, with a further fine which may extend to Rs. 500/- for every day after the first during which the contravention continues.
HAVING TWO DINs WHAT TO DO AND HOW TO CHECK IF ONE IS HAVING TWO DINs?
This article is especially for the person who has obtained more then 1 (One) DIN at any time. We came to know that Regional Director (Noida) has issued “Show Cause Notice U/s 266G of the Companies Act, 1956” to more than 2 Lac Persons.
If any person not received “Show Cause Notice” and having two DIN, we will advise that person to surrender One DIN and file petition with CLB for Compounding of Offence.
** One should preferably cross check from the MCA website that whether he is occupying more than one DIN as per process given below:
STEPS:
1. Go to MCA website Link: http://www.mca.gov.in/
2. Log in by your user ID on MCA website.
3. Click on “Companies/LLPs in which a person is/was a director/Designated Partner”
4. Click on Search Button in from of DIN/DPIN
5. Mention the Name, Father Name and Date of Birth and search.
6. MCA will display the DIN No. allotted to you.
If one find more than one DIN. He should immediate took steps to surrender the duplicate DIN, preferably which are not in use as per process given below:
(Practical Example: One of my client received show cause notice from the Ministry for surrender of duplicate DIN. While I was preparing the surrender application and searching on MCA, I came to know that person have THREE DIN. Therefore it is advisable that one should even check on the MCA website whether he/she is occupying more than, even if he/she has not received any notice)
PROCESS FOR SURRENDER/CANCELLATION/ OF ADDITIONAL/DUPLICATE/ EXTRA DIN:
Section 153 read with rule 11 of The Companies (Appointment and qualification of Directors) Rule, 2014
(a) Holder of duplicate DIN shall make an application for surrender with Regional Director,
(b) The application shall be made in form DIR-5.
(c) The application shall be accompanied with a declaration on affidavit duly notarized 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.
(d) The form DIR-S is physical form so form DIR-S will be attach in form RD-1 and filed with Regional Director.
Attachments of RD- 1:
+ DIR-S
+ Self attested copy of PAN Card
+ Self attested copy of Passport
+ Affidavit of surrender of DIN (Draft Attached) + Board Resolution, if any (Draft Attached)
(e) The Central Government will check E-records.
INFORMATION REQUIRED TO BE MENTIONED IN DIR-5:
1. Name & Din of applicant
2. Reason for surrender of DIN
3. PAN
4. Passport No, if any.
5. Permanent resident address.
6. Phone No & Email ID
7. DSC of Person himself
INFORMATION REQUIRED TO BE MENTIONED IN RD- 1:
1. Mention CIN of Company in which you are director from original DIN.
2. Purpose- Other
3. Purpose-Surrender of DIN
4. Detail of application
5. DSC of person himself! any director of Company.
NOTE:
- The e-Form will be processed by the office of Regional Director (Non STP).
- Fee as per Annexure A of RD-1 instruction kit.
- A company can seek approval from Regional Director by filing application in e- Form RD-1 for certain mentioned purposes under Companies Act, 2013.
- Corresponding form 24A as per Companies Act, 1956.
- Please note that giving false statement or evidence is punishable under section 448 and 449
After surrender of DIN one should also apply to Company law Board (CLB) u/s 621A of Companies Act, 1956 for Compounding of Contravention of Section 266G of Companies Act, 1956)
Corresponding section of 621A is Section 441. Section 441 is still not applicable so application will be file as per Section 621A of Companies Act, 1956.
Which authority has Power to compound the offence?
- The offence can be compounded by the Regional Director (RD) where the maximum amount of fine is upto Rs.50,000/-
- By the Company Law Board (CLB) where the maximum amount of fine exceeds Rs.50,000/-.
PROCESS FOR COMPOUNDING OF OFFENCE (MORE THAN ONE DIN):
Provisions and procedure for Compounding of offences, which are punishable under Companies Act, 1956 are stipulated under section 621A of the act.
MEANING OF WORD COMPOUNDING:
The meaning of word compounding of offence is not defined under Companies Act, 1956. However if we try to analyze the section 621A.
we can draw one clear interpretation i.e. “It`s nothing but admission of guilt” In the process of compounding, the person may either Suo Moto or on receipt of notice of default/initiation of prosecution, admits the commission of default and make an application for compounding of the concern offence.
The defaulters agree to pay penalty which may be ordered by the Central Government. We will try to analyze the provisions and procedure of compounding.
Turning to the procedural part, we must understand the basic provisions relating to compounding and authorities to be approached for compounding of offence.
Important provisions pertaining to Compounding of Offences
APPLICABILITY: –
Only those offences which are punishable with either Penalty or Penalty or imprisonment i.e. where it is at discretion of the court to impose penalty or imprisonment, are compoundable under section 621A.
In other words offence which is specifically punishable with imprisonment only or imprisonment plus fine is non-compoundable.
PENALTY: –
Penalty, which may be imposed under the order of compounding by the CLB or RD shall not exceed the maximum amount of fine which may be imposed for commission of that offence.
Means if the maximum fine for an offence is 10 times of basic fees, then the penalty shall not exceed the 10 times of basic fees.
The fine imposed under the order of Compounding is considered as additional fees and payable under section 611 (2) and not regarded as penalty. This has a significant implication for qualifications and disqualifications of Directorship.
EFFECTS OF COMPOUNDING:
> Once the offence is compounded, no further prosecution shall be initiated either by registrar or shareholder or any other person in respect of that offence
> Once the offence is compounded, the intimation of compounding needs to be given to the Registrar within period of seven days from the day on which the offence is so compounded.
PROCESS FOR COMPOUNDING:
1. Preparation of Application for Compounding– A petition is required to be prepared in form no. 1 of Companies (court) Rules, 1959 . Following documents are required to be attached with petition:-
> Board resolution authorizing director for filing petition.
> Affidavits duly notarized.
> Power of attorney / Memorandum of Appearance
> Sometimes Copies of 3 years attested financial statements
> Copy of agreement (if any)
The complete set for petition is to be prepared in Duplicate:
> One for presenting in Company Law Board/Regional Director
> One as an acknowledgment and for our records
2. Filing of Form with ROC:
E-form No. GNL-1 is required to be filed with Registrar of Companies:
Attachments of GNL- 1:
- Detailed application is required to be attached in all the cases of filing.
- Affidavit duly notarized.
- Power of Attorney/ Memorandum of Appearance
- Copy of notice received from ROC or any other competent authority
3. Filing of Physical Copy of Application
After Submission of E-form No. GNL-1 physical application can be made to the CLB or RD as the case may be for compounding of offence.
4. Order of Compounding-
Once the order of Compounding is passed, the same needs to be filed with the registrar of companies in e-form INC-28.
(Author – CS Divesh Goyal, ACS is a Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com)
Read Other Articles Written by CS Divesh Goyal
(Republished with amendments)
Whether Application for compounding is mandatory after surrender of 2nd DIN?
Suppose if a person is having two DIN’s. But he is not director in any company. Then how he can file the RD-1, because RD-1 is to be compulsorily filled with CIN. Also send me the draft board resolution and compounding application format to kkfcs5@gmail.com
Sir
If the director had multiple din before companies act 2013 came into force then which act provisions will now be applied to him. i. e 1956 or 2013 Act.
Sir i have two dins . one din is registered with the company but the company did not started we do not do any financial transactions. Second din never used any where. So please tell me the solution. Email. Sureshk.cool@gmail.com
Please kindly share the attachment @”jeetu122@gmail.com” it’s urgent thank you
i urgently Require draft of Affidavit of surrender of DIN + Board Resolution. please send them to my e-mail – ritesh.jain@dbm.in
Kindly share the format of affidavit and Board Resolution for Surrender of DIN at mydin09@gmail.com
thanks
Dear Sir
Thank you for such a good post. It would be great if u can share format of Affidavit & Board Resolution to be attached in RD-1.
Rgds
Dear Sir,
I have some question in mind, please clarify
Sl. No. (b) of the undertaking (DIR 5)state as under:-
“I have never been appointed as director in any company and the DIN has never been used for filing of any document with any authority”
In case of any person having multiple DIN and he is a Director in any company, how can he declare the above declaration. If do so, it will be a false statement.
RD-1 is CIN based, how can an individual file this form?
Thanks in advance
With Warm Regards
Manohar
Dear sir
Thank you for the post please share the format of compounding process.
Dear Sir,
Please send us the format of board resolution to be attached in form RD-1
Dear sir,
Kindly share the format of affidavit and Board Resolution for Surrender of DIN @ prashanth.pkp@gmail.com
thanks
Dear Sir
Thank you for this post. One client has two DINs from 2007. he has to surrender one and he has got show cause notice from MCA. In this matter I wanted to know the meaning of the words “Rs. 500 for every day after the first during which the contravention continues”.
we want to file compounding application but first I have to understand what will be the penalty? Whether it will be continued from 2007?
Pl. guide and pl. share format of Affidavit and board resolution. My mailid is neelima_jain580@yahoo.com
Dear Sir,
One of my client has deceased, form DIR-12 has been filed for cessation of directorship, now her legal heir wants to surrender DIN. Please share format of affidavit, board resolution. Please also confirm that legal heir can sign application in DIR-5, affidavit and form RD-1.
Sir my one party is having two DIN both the DIN is issued in May 2014 out of which he used second DIN for any requirement and we have received notice for having two DIN , so sir after filing DIR – 5 , whether it is still need to do the process of compounding?
Dear Sir
Thank you for the post, I would be great help if u can also share format of Affidavit and Board resolution to be attached in form RD-1
My one client has two DIN .She has used one DIN in one Company upto 2007-2008. 2nd DIN has never been used by her and now she has not using any one. She has received notice from MCA.
Please tell me whether compounding is required in this case and if she sumbit RD-1,DIR-5 physically whether it is enough.
Kindly send me format of affidavit and Board Resolution
Dear Sir,
Kindly share the format of affidavit and Board Resolution for Surrender of DIN in my e-mail – vatsaandco@hotmail.com
Dear Sir,
Appreciate your efforts.
Your post is very helpful.
It would be further helpful if you share the affidavit format. My Email id. wani.gaurav@gmail.com
Regards,
Kindly share the format of affidavit and Board Resolution for Surrender of DIN @ info@adjain.com
Dear Sir,
Thank you for the post, I would be great help if u can also share format of Affidavit and Board resolution to be attached in form RD-1 .
Regards,
Jyoti
thans for ur adivces. i urgently Require draft of Affidavit of surrender of DIN + Board Resolution. please send them to my e-mail above mentioned.
Dear Sir,
Kindly share the format of affidavit and Board Resolution for Surrender of DIN in the above mention email id.
My one client has two DIN .She has used one DIN in one Company upto 10/02/2011. 2nd DIN has never been used by her and now she has not using any one. She has received notice from MCA.
Please tell me whether compounding is required in this case and if she sumbit RD-1,DIR-5 physically whether it is enough.
Kindly send me format of affidavit and Board Resolution
Kindly share the format of affidavit and Board Resolution for Surrender of DIN
Dear Sir,
Please share format of Affidavit.
thanks for such useful information
my email.id is ankitarathi54@gmail.com
Dear Divesh,
Your write up was very useful.Can you share the format of affidavit and Board resolution for filing.
one clarification required.
He is director in 3 companies, through which company I shall make the application(RD1)
My mail id is: lalitha.companysecretary@gmail.com
Sir i have two dins . but i have not used both dins anywhere . now what i want to do? Please tell me the solution
Kindly share the format of affidavit and Board Resolution for Surrender of DIN
Dear sir,
Please provide affidavit format…
Forward at vivekzpa@gmail.com
Thanks
Plz provide the format of affidavit and board resolution at agarwalankita18@yahoo.com
Please provide Form No. 1 of Companies (court) Rules,1959.
Hi
Kindly send mail of affidavit at “ankushmunjal@yahoo.com”
Format of affidavit & Resolution is missing, Please complete the process of DIN surrender, by providing the same.
Kindly share the format of Affidavit and Resolution to be attached with Form RD-1
Sir, if a person was allotted one DIN No. and one DPIN no. under old system of separate DPIN No. for LLP. And MCA System has not merged his both DIN numbers, still the person need to go for Compounding..? Because actually he has taken 2 DINs under the provisions of LLP act. Kindly advise what next action we should take in such situation.
Thanks in advance
In case individual is not a director in any of the company in that case Dir 5 can be physically submitted to RD with reply of show cause notice.
There is no specific format for BR.
Dear Sir,
Very useful as you for me the above noted point. I need the affidavit and board resolution format can you send me. My E-Mail krishca90@gmail.com.
Dear Sir
Thank you for the post, I would be great help if u can also share format of Affidavit and Board resolution to be attached in form RD-1
Thanks Sir for your post. Kindly mail me format for Affidavit and board resolution
Require Affidavit of surrender of DIN + Board Resolution
Kindly share the format of affidavit and Board Resolution for Surrender of DIN @ csprashantgupta@gmail.com
Dear Sir,
This is an addendum to my earlier comment on your post regarding surrender of DIN.
Sir, as you mentioned DIR-5 is an attachment of RD-1 but, RD-1 requires CIN of Company. If Director doesn’t use that DIN anywhere, then how come we can upload RD-1 form with the MCA?
Please advice and do the needful.
Thanking You.
Dear Sir,
Thanks a lot for sharing this information.
As per your article attachements of RD-1 is DIR-S. Can you please explain that where we can find that form DIR-s.
Kindly send me test mail for attachment.
Dear Sir,
Thanks for the useful info. Pls. help us by sharing Format of Affidavit & Board Resolution to be attached with form RD-1.
Great Day !
Kindly share format of affidavit and Board resoultion
Dear Sir,
Thank u very much for the post, please share the format of Affidavit to be attached in form RD-1 at the earliest which will be most helpful
Dear Sir
Thank you for the post, I would be great help if u can also share format of Affidavit and Board resolution to be attached in form RD-1 .
Dear Sir
Thank you for the post, I would be great help if u can also share format of Affidavit and Board resolution to be attached in form RD-1