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What isAddition of New Directors?

A Director of a Company is a person that is elected by the shareholders to manage the affairs of the company as per the MOA and AOA. As the company is an artificial person it can only act through the agency of a natural person. Thus, a director has to be a living person and the management of the company is entrusted to its Board of Directors. The appointment of the Directors can be required from time to time based on the requirements of the shareholders of the business.

How toAdd Directorto a Company?

In a Private Limited Company, the Directors of the company play a crucial role in the functioning. The conduct of the business and the day-to-day decisions are made by the Directors. The Directors happen to be the key people in which the shareholders of the company trust to invest their money. In this article, we are going to discuss how a company can legally change and have new directors on board in India.

The First Step is to obtain the consent of the proposed directors:

The consent of the proposed director is necessary, according to form DIR-2 this is a very crucial document and the company is required to obtain the Form DIR-2 before proposing him to the Director of the Company.

Digital Signature Certificates of the Proposed Directors:

In case the proposed directors of the company do not have Digital signatures, they need to obtain a DSC. Apply for DSC now.

Get the Director Identification Number(DIN):

In case the Proposed Director does not have a DIN, then the company should apply for the DIN of the proposed person. This resolution is to be attached to the form DIR3. This DIN that is allocated once can be used for a lifetime. DIN can be obtained for any person who is above the age of 18. Also, the nationality of the proposed does not matter. Hence, the Indian Nationals, Non- Resident Indians, and Foreign Nationals can obtain the DIN and be appointed as Directors in a Private Limited Company in India.

The Company should obtain all the KYC Documents along with the necessary educational qualifications documents as per the conditions of the job. Also, there is no minimum education qualification to hold the post of Director in the Company in India.

Types of Directors

Managing Director:

Managing Director is a Director, who by virtue of AOA of a company or an agreement with the company or a resolution passed in its general meeting, or by its BoD, is given substantial powers of management of affairs of the Company.

Executive Director:

The Executive Director is the director, who is in full-time employment of the company. This is the reason that the executive directors are mainly engaged in the core management of the company and managing affairs of the company.

Additional Director:

The Directors in all the existing companies are first registered as additional directors. This appointment of Additional Director is done by the Board of Directors. They can hold a meeting up to the next general meeting.

Alternate Director:

Alternate Director is someone appointed for a person who is a Non-Resident Indian or Foreign Collaborators of a company by the Board of Directors to act for the original director during his absence for a period of more than three months.

Ordinary Director:

The Ordinary Director is the Director who attends the Board Meetings of the Company and participates in the matters put across the Board of Directors. They are neither whole-time Directors nor Managing Directors for the company.

Remove Director

What isRemove of Director?

Director of a company is a natural person elected by the shareholders as per the Memorandum of Association and Articles of Association of the company. Appointment of an additional director may be required by the business requirements of a particular company. Depending on circumstances, a director may have to resign or he may have to be removed from the board of directors.

Procedure for Director Resignation and Director removal will be different. A Director can resign from a company by giving a notice. Board is required to file a relevant form with ROC within 30 days thereof. A Director is also required to file form DIR11 with ROC.

Document ForAdd-Remove Director

Self-attested copy of PAN

Self-attested copy of identity and address proof such as passport or Aadhar card or Election card

Consent to act as director in format of DIR-2

Copy of resolution passed by the shareholders

Notice for shareholders meeting

PAN card: Mandatory for an Indian Applicant

Passport: Mandatory for a foreign Applicant