Divya, a director in 3 companies, finds that she has three DIN obtained on different occasions by mistake. DIN 1 is mapped to X Ltd while DIN 2 is mapped to Y Ltd and DIN 3 to Z Ltd. Has she contravened any provision of

CS Professional · Advanced Company Law and Practice · PYQS · December 2018
Divya, a director in 3 companies, finds that she has three DIN obtained on different occasions by mistake. DIN 1 is mapped to X Ltd while DIN 2 is mapped to Y Ltd and DIN 3 to Z Ltd. Has she contravened any provision of the Act and if so, what is the remedy?

Answer & Explanation:

Section 155 of the Companies Act, 2013 provides that no individual, who has already been allotted a DIN under Section 154, shall apply for, obtain or possess another DIN. Thus, Divya has violated Section 155 and has to surrender the two additional DIN possessed by her. Remedy: She has to file e-form DIR-5 to surrender the two extra DIN obtained by her, explaining that the two extra DIN were obtained by mistake and without any malafide intentions. MCA (Ministry of Corporate Affairs) has clarified in its website that in such cases, the oldest DIN will be retained and all the subsequent DIN in currency shall be surrendered. All the entities with which Divya is connected shall be mapped to the oldest DIN while subsequently obtained DIN will be cancelled. [Refer Rule 11(1)(f) of Chapter 11.]

Topics: Directors

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