This massive exercise of KYC verification of all directors is likely to affect more than 50 Lac persons which include around 35 lac directors on the board of companies or designated partners of the LLP. Though the decision to verify the KYC is a welcome move to update the database of directors for proper communication by the government agencies. However, there are many persons who have been allotted a DIN pursuant to their application for allotment of DIN, but they don’t intend to continue to have the DIN anymore. The article is an attempt to present the legal position on DIN with respect to its surrender or deactivation in simple and easy to understand language.
The Central Government acting through their Regional Director, Northern Region, or any other officer as may have been authorized in this regard can cancel or deactivate the DIN under the following situation as per Rule-11 of the Companies (Appointment of Directors) Rules 2014. The DIN is a duplicate allotment, in other words, if the same person has two or more director identification numbers
“Having discussed the legal position on surrender of DIN as per rules hereinabove, the Voluntary Surrender of DIN is possible only on satisfaction of below two conditions. In other words, a DIN cannot be voluntarily surrendered if the below conditions are not satisfied“