Wednesday, October 4

Directors Having Multiple DINs

Ministry of Corporate Affairs (MCA) had made it mandatory for all directors who are in possession of Multiple DIN to surrender the additional DINs and retain only the oldest DIN in pursuant to Section 153 read with rule 11 of The Companies (Appointment and qualification of Directors) Rule, 2014. Directors have to use Form DIR-5 to submit the duplicate or inactive or additional DIN. Summary
  • MCA has notified that any director in possession of Multiple DINs, can only retain the oldest DIN and surrender the other DINs
  • Directors shall use Form DIR-5 to surrender the DINs
  • There are 628 directors who have multiple DINs and they are associated with 1260 unique DIN numbers
  • 2,723 Unique companies are associated with these 628 directors
  • Directors holding more than 1 DIN are violating the DIN Laws formed by Companies Act and are punishable by law
DIN is a unique Director Identification Number allotted to any person who intends to be a Director. It is an 8-digit unique identification number that comes with lifetime validity. DIN has been introduced in India by way of Companies Amendment Act, 2006. DIN is issued by Ministry of Corporate Affairs, Government of India. A Director shall be in possession of only 1 DIN similar to PAN of any individual. Even if he/she is a director in more than one company, he/she shall have only 1 DIN. If in situations, he leaves a company and joins another company as a director, the same DIN should be submitted to the other company. If a director uses more than one DIN, it is a prima facie evidence of the violation of the law. More than one DIN may get generated through illicit ways.

No of Directors having Multiple DINs:

As per analysis report by InstaFinancials the factual data says that there is 628 Unique PAN that is linked to 1260 DINs. Out of 628 PAN, 1 PAN is linked to 4 DINs; 2 PANs are linked to 3 DINs each and rest 625 PANs are linked to 2 Dins each(625×2=1250). Ref to Infographic 1 This analysis is done on 17,06,460 Companies registered in Registrar of Companies in India. Through the analysis done by InstaFinancials, we come to know that many Directors are carrying multiple DINs which is a punishable offense.
Infographic 1: Multiple DINs Linked With Single PAN

No of Unique Companies associated with Multiple DINs:

There are 3,225 companies in total which have directors with multiple DINs, out of that 2,723 are unique companies. 2,227 Companies have at least one director who has multiple DIN; 492 companies are there who have 2 directors each carrying multiple DIN; 2 companies have each 3 directors with multiple DIN; 2 more companies have each 4 directors possessing multiple DIN. Ref to Infographic 2
Infographic 2: No of Unique Companies with Directors Having Multiple DINs

Active Companies associated with Multiple DINs:

A total of 3,225 companies is associated with Directors having Multiple DINs. There are 1,972 companies where there is at least 1 Active / Current Director who has multiple DINs. In 667 Active Companies, one of their past directors is in possession of multiple DINs. Ref to Infographic 3
Infographic 3: Number of Companies with Multiple DINs
All the companies shall ensure that the shall not appoint any director who is in possession of multiple DINs. If any of their directors are in possession of multiple DINs, such director submits their additional DINs and retains the oldest DIN. The entire list of directors with the companies linked to them are available with InstaFinancials.  Please reach out to us at InstaFinancials to check if any of your company directors are in possession of Multiple DINs. Important Links: Application Form for Duplicate or Additional DIN Submission – Form DIR 5

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