Pratap is the director of QAP Overseas Trading Ltd. The name of the company was recently struck off from the register of companies by the Registrar. He does not hold directorship in any other company. Therefore, Pratap a
CS Executive · Company Law · PYQS · June 2021
Pratap is the director of QAP Overseas Trading Ltd. The name of the company was recently struck off from the register of companies by the Registrar. He does not hold directorship in any other company. Therefore, Pratap applied to the Registrar for cancellation of his Directors Identification Number. His application was rejected by the Registrar. Is the action of the Registrar justified under the relevant provisions of the Companies Act, 2013?
Answer & Explanation:
Provisions of the Companies Act, 2013: Rule 11(1)(f) of Companies (Appointment and Qualifications of Directors) Rules, 2014 , provides that on an application made in Form DIR-5 by the DIN holder to surrender his or her DIN along with a 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. Application to the given case: Pratap was a director of QAP Overseas Trading Ltd. and therefore, he was appointed as a director using his DIN. His company's name was recently struck off, but this does not negate the fact that he was previously appointed as a director and used his DIN for official filings. The condition for surrendering a DIN under Rule 11(1)(f) is that the applicant has **never been appointed as a director** in any company and the DIN has **never been used for filing** any document. Conclusion: As Pratap was appointed as a director and presumably used his DIN for filings, he does not meet the criteria for surrendering his DIN under Rule 11(1)(f). Therefore, the action of the Registrar in rejecting his application for cancellation of his Directors Identification Number is **justified** under the relevant provisions of the Companies Act, 2013.
Topics: Company Law
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