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Appointment of Director without DIN

SkDash (CS (Member) CWA (Final)) (909 Points)

25 April 2011

Can a Company appoint a person as a Director who doesnt have DIN (nor applied for DIN on / before that date of appointment) subject to the condition that his appointment will be subject to the submission of DIN approval letter to the Co ? If possible, what will the effective date of allotment ? whether the date of BM where conditional appointment was made or the date of getting DIN approval Letter ?

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10 Replies

SANTOSH SHAH (Company Secretary) (754 Points)
Replied 25 April 2011

Originally posted by : Santosh
	Can a Company appoint a person as a Director who doesnt have DIN (nor applied for DIN on / before that date of appointment) subject to the condition that his appointment will be subject to the submission of DIN approval letter to the Co ? If possible, what will the effective date of allotment ? whether the date of BM where conditional appointment was made or the date of getting DIN approval Letter ?

Hi Santosh

In my view, no such appointment of person as director without obtaining DIN is valid.

DIN is a pre-requisite, say a License to be a Director on board.

Only Post obtaining DIN and DIN approval Letter, person is entitled to appoint as Director.

Even if person is appointed on conditional appointment as Director, what role that person would

have ? He is not director in eyes of law (MCA) unless DIN Obtained & Form 32 filed.

So in my view such appointment has no legal effect or binding as a director.

Others / Experts Views solicited.

regards

Santosh Shah

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Abhijeet (Student Of ICSI) (59 Points)
Replied 25 April 2011

A person can't be Director without DIN.

Getting DIN is so easy now.Online generation of DIN, instantly at the time of online application.

Attached File : 4 circular 04mar2011.pdf downloaded: 893 times

Kaustubh Shevade (Fresher CS) (25 Points)
Replied 07 May 2011

Dear All,

I support both of the above views, as they have rightly said.

Kindly refer to Sec 266A to K, which clearly states that from April 2006, any person who wish to get appointed as a Director of the company has to obtain DIN.

Further exsting Directors of the company were required to obtain the DIN.

And as per the current practise in Form 32, the details of the directors doesnt get prefilled, if the DIN is not entered.

AND PLS CLARIFY, WHICH DATE YOU WANT TO CONFIRM? Date of Appt of Director? OR Date of allotment of DIN?

PS: THERE DOESNT EXIST ANY CONDITIONAL APPOINTMENT AS SUCH IN COMPANY LAW.

Thanks & Regards,

Kaustubh

CS Shivi Reddy (COMPANY SECRETARY) (175 Points)
Replied 08 May 2011

Dear all,

Although a person shud hav a DIN no. before his appointment as a Director...but practically it is quite possible....

DIN No. can be obatined after his appointment as a Director also and Form 32 can be filed later on after obtaining DIN no...

Regards

Shivi

Shridhi Jain (Company Secretary) (1678 Points)
Replied 20 March 2012

Hi members,

Pls tell me, We obtain DIN no. of a person today and appointing him as a director w.e.f past four months. Is that possible ?

Pls reply.

Regards,

Shridhi Jain

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Charu Srivastava (Company Secretary) (4210 Points)
Replied 20 March 2012

Dear Shivi,

Practically what you said can be done but this against the provisions of law. The problem will arise in case of scrutiny.

Secondly Now due to the incluson of STP, the DIN number is generated instanteously once DIN is uploaded and therefter file form 32

1 Like

Shridhi Jain (Company Secretary) (1678 Points)
Replied 20 March 2012

Thanks charu for the reply.

ssp.khurana (CA IN PRACTICE ) (29 Points)
Replied 07 August 2014

x was appointed director of a private limited company in 2004 when DIN was not in force.She continued as director till 2007 and without obtaining DIN and without resigning from the board she has relocated herself outside India. IT IS DIFFICULT TO LOCATE HER.

How to remove her from the board without her din. can ROC condone the requirement of DIN in her case and accept form 32 removing her from the board.

CA SSP.KHURANA

prakash (Company Secretary) (1352 Points)
Replied 07 August 2014

Dear All,

As per section 152(3) of the Companies Act, 2013, No person shall be appointed as director of the Company unless he has allotted DIN under section 154 of the Act.

Hence Din should be obtained before appointment as director in the company

ankita nagpal (CS) (39 Points)
Replied 30 September 2014

Dear ALl,

If a person's candidature has discussed on 18.09.2014 in a Board Meeting for appointing him as a nominee director with effect from 21.03.2014. He has obtained his Din in aug 2014. Will his appointment valid through march 2014? Kindly update.

Thanks