A Director Identification Number (DIN) is allotted by the central government to every individual intending to be appointed as a director of a company.
However, under some circumstances, the individuals decide to surrender the allotted DIN to the government. Here we will discuss such circumstances where DIN is needed to be surrendered and the process of doing so.
Some of the reasons due to which an individual needs to surrender his DIN are:
To surrender your DIN, it is important to check its eligibility to be surrendered. The DIN can only be surrendered if the following conditions hold true:
The concerned individual should never have been appointed s a director in any company.
For this, the board of directors will have to pass a board resolution stating that the individual in concern has never been appointed as a director and the DIN in question has never been used, therefore it is eligible for surrender.
A person willing to surrender a DIN can file an E-form DIR-5 with the MCA on their website. DIR-5 requires you to provide the following information:
In case of a death of the DIN holder or if he is declared as a person of unsound mind by the court or the person has been adjudged as insolvent, a related person can file form FIR-5 on behalf of the concerned individual.
The procedure to surrender a DIN is as follows:
Following documents are attached with the form RD-1:
Information that is required to be mentioned in DIR-5 is:
Procedure to surrender a DIN is easy but it is important to make sure that the DIN has never been used or in case of multiple DINs, during the time of surrender there is no directorship issued on the surrendering Director’s Identification Number. Also, after the surrender of the DIN, one should apply to the Company Law Board of the Companies Act, 2013 for the compounding of Contravention.
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