• Notification Date: 12-11-2021
• Notification No: 25/2021-22

MCA Dismisses DINs of Disqualified Directors

The Ministry of Corporate Affairs (MCA) has notified that the Director Identification Numbers (DINs) of Directors found to not qualify, post-demonetization has been dismissed and removed under Section 248 of the Companies Act,2013 since the restriction was for five years.

“Ministry of Corporate Affairs had flagged the DINs of Directors found to be disqualified under subsection 2(a) of section 164 of the Companies Act, 2013 w.e.f. 01.11.2016 for a duration of five years. This is for the information to all the concerned that DINs eligible to be de-flagged on expiry of the period of disqualification are in the process of verification. Necessary action shall be taken shortly,” the Ministry said.

The Ministry dismissed and deactivated over 19 lakhs (19,40,313) Director Identification Numbers in the MCA21 Database as a result of non-filing of Know Your Client  (KYC), as of 28.11.2019. As reported, the MCA21 Database does not contain information regarding employment details of directors or DIN holders. The terms “Ghost Directors” and “Shell Companies” do not qualify and are not defined in the Companies Act, 2013.

But, during the Financial Year 2017-18 and 2018-19, Registrar of Companies (ROCs) had removed 3,38,963 companies under Section 248 of the Companies Act, 2013 for failing to file Financial Statements or Annual Returns. And the total number of 4,24,454 directors were barred under the provisions of section 164(2)(a) read with Section 167(1) of the Companies Act, 2013.