Amitabh is a director in PQR Overseas Trading Ltd. The company's name has recently been struck off from the register of companies by the Registrar. He does not hold directorship in any other company. Therefore, Amitabh a

CS Executive · Company Law · PYQS · December 2019
Amitabh is a director in PQR Overseas Trading Ltd. The company's name has recently been struck off from the register of companies by the Registrar. He does not hold directorship in any other company. Therefore, Amitabh applied to the Registrar for cancellation of his DIN. However, the application was rejected by the Registrar. Is the rejection of application correct in your opinion?

Answer & Explanation:

Rule 11 of Companies (Appointment and Qualification of Directors) Rules, 2014 allows cancellation or surrender or deactivation of DIN under the following cases- If DIN 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; If it is obtained in a wrongful manner or by fraudulent means Death of the concerned individual Concerned individual has been declared as a person of unsound mind by a competent court Concerned individual has been adjudicated an insolvent On application made in Form DIR-5 by the DIN holder to surrender DIN along with declaration that he has never been appointed as director in any company & said DIN has never been used for filing of any document with any authority. The issue raised in question is not covered in any of the above conditions. As Amitabh was appointed as a director using his DIN (and presumably filed e-forms using the DIN), such DIN shall not be deactivated and DIR-5 cannot be filed even though the name of the company has been struck off and he does not hold directorship in any other Company. Hence, the action of the Registrar is correct.

Topics: Company Law

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic