Director identification number
Neeraj Kumar Giri
(Querist) 04 June 2014
This query is : Resolved
Dear Experts,
Kindly advice me about a case :
If any body is a Director of a Private Limited Company, and obtain DIN and operated the company from last three years, and now in 2013 he got Government Service in Eastern Coalfields Limited as an Accountant but he has not resigned from the post of Director and still he is a Director of his Company, as the Company is not doing the business it is about to close but my question is that is it violation of Law that a person engaged in Government Service as well as can he become a Director of Private Limited Company and if yes then what is the process of surrender of DIN, as well as kindly inform me under which Law it is violated the Law.
Thank You.
malipeddi jaggarao
(Expert) 05 June 2014
It is not a violation of law to continue as Director, but it is violation of service regulations of the Government Employment.
The Director might have obtained the DIN number through the Company Secretary who was dealing the affairs of the company. Let him meet the Company Secretary and seek his advice. He has to leave the position of Director, by resignation, it has to be accepted in the Board, necessary resolutions are to passed and lodged with Registrar or Companies. This has to be done immediately to avoid future problems in his Government service.
As the company is defunct, if all Directors are willing to close it, their Tax consultant and company secretary will guide them for closure.
Neeraj Kumar Giri
(Querist) 05 June 2014
Dear Jaggarao Sir,
I want to know that in this case if any person is engaged in Government Service as well at the same time he is a Director of a Limited Company, and he is violating Service regulation of Government Employment.
1) What is penalty for this kind of violation.
2) Can Government punish him by dismissing from Service.
3) Under which law or section it is possible.
Thank You.
T. Kalaiselvan, Advocate
(Expert) 06 June 2014
Are you bent upon on getting the director punished by law or in what way are you connected with that director, are you aggrieved by him?. Let the concerned government department take action against the director if he is proved to have violated the service conditions, regulations and rules by his such act.
malipeddi jaggarao
(Expert) 06 June 2014
I too agree with the points raised by the expert Shri T.Kalaiselvan. What exactly you want - you want punishment to the Director, or you want to save him from the problem?
Neeraj Kumar Giri
(Querist) 06 June 2014
Dear Experts,
Actually the Director who is holding both place in Government Job as well as Director of a Private Limited Company has cheated many people by his own tricks as I dont have any evidence against him. So, I want to know that is there any way to punish the Director by way of Law.
Thank You.
malipeddi jaggarao
(Expert) 06 June 2014
You can lodge a complaint to the Managing Director/General Manager (HR) Eastern Coalfields Limited that he is carrying the business and Director in a Company. You should also enclose proof to this extent. If you feel so, all the persons have been cheated by him can together file a complaint with the above authorities if they have documentary evidence by enclosing copies of such documents.
This comes under violation of Service Regulations/Rules and suitable disciplinary proceedings will be initiated by the Department. Punishment depends upon the gravity, representation of the employee and perception of the employer. They have to follow the procedure and prove the charges as per the principles of natural justice.
Neeraj Kumar Giri
(Querist) 07 June 2014
Thank Jaggarao Sir for your valuable reply.
Thanks to all Experts.
