The concept of a Director Identification Number (DIN) has been introduced for the first time with the insertion of Sections 266A to 266G in the Companies (Amendment) Act, 2006. It is a part of the MCA 21 Project launched by the Ministry of Corporate Affairs. As such, all the existing and intending directors have to obtain DIN within the prescribed time-frame as notified.
The DIN is a unique identification number for an existing director or a person intending to become the director of a company. In the scenario of e-filing, DIN is a prerequisite for filing of certain company related documents. It is mandatory for all directors to acquire a DIN.
To get the DIN, an online application is to be filed. A provisional DIN will be issued after online filing. Thereafter, the printed detail of the fields entered has to be generated. A photo has to be attached on the form with proof of the residence duly attested by Notary/ Gazetted Officer/Cost Accountant /Company Secretary/Lawyer.
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ADVERTISEMENTS:
On resignation of the Director from a company, the DIN obtained does not have to be cancelled. The DIN will remain with the individual only. Only a single DIN is required for an individual irrespective of number of directorships held by him. All the directorships of an individual would be mapped in the database through DIN.
With the introduction of the concept of DIN, the offences committed by the directors will be immediately detected. It would also help in addressing the concerns of companies vanishing after raising funds from the public. Investors will also get the chance to take more informed decision by knowing the top management of the company.