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Addition of New Directors


A director of a corporation is a person chosen by the shareholders to oversee the firm's operations in accordance with the MOA and AOA. A natural person must act on behalf of the firm because it is an artificial person. As a result, in order to serve as a director, a person must still be alive, and the board of directors is in charge of running the business. Depending on what the business's shareholders require, the appointment of the Directors may occasionally be necessary.


How many a Director be added to a company?


The Directors of a Private Limited Company are essential to the operation of the business. The Directors are in charge of managing the company's operations and making daily decisions. The Directors are the main individuals that the company's shareholders rely on with their money. In this post, we'll talk about the legal procedures in India for appointing new directors to a firm.


The proposed directors' approval is required as a first step: The Company must obtain the Form DIR-2 before proposing the suggested director to the Company's Director in order to ensure that they have their consent. This is because the Form DIR-2 is a very important document.

Directors-to-digital is' signature certificates (DSCs): If the company's prospective directors lack digital signatures, they must get DSCs. Immediately submit an application for DSC.


Obtain the Director Identification Number (DIN): In the event that the Proposed Director does not already have a DIN, the Company shall apply for the DIN of the Proposed Person. This resolution must be submitted with the DIR3 form. This single-use DIN may be applied for a lifetime. Any person who is older than 18 can apply for a DIN. The proposed candidate's nationality is also irrelevant. Therefore, citizens of India, non-resident Indians, and foreign nationals are all eligible to apply for the DIN and be appointed as directors of private limited companies in India.


According to the requirements of the employment, the company must get all KYC documents as well as the certifications of the applicant's educational background. Additionally, there is no required level of education in India to occupy the position of director for a company.


A Private Limited Company's directors are who?


An individual appointed to a company's board of directors is referred to as a director under the 2013 Companies Act. The people chosen by the company's shareholders to oversee its affairs make up the Board of Directors. A company can only operate through the agency of natural persons since it is a legal construct that was founded by law. Only via humans and the Directors who are primarily responsible for the company's actions can the Directors take action. The group of people who are tasked with managing a firm is known as the board of directors.


The other definitions claim that a director is a person who manages, supervises, or commands something. Those that manage, control, or oversee are known as directors. He is a legal appointment or election that grants management and direction of the Corporation's activities. He is a person chosen by the shareholders of a company to set its policies.


Directors in a Company: Types


In charge of managing

A managing director is a director by virtue of the articles of association of a company, a contract with the company, a resolution adopted at the annual meeting, or a decision made by the board of directors. Due to the fact that the board of directors is given significant authority over how the company's activities are managed.


Either a full-time director or an executive director

An executive director, sometimes known as a whole director, is someone who works full-time for the company.

Director of Operations

An everyday director is a straightforward director who participates in matters brought before the Board of Directors and attends Board meetings of a corporation. They aren't managing directors or full-time directors.


Director additional

In accordance with the terms of the company's articles of association, a third director is a person chosen by the board of directors to serve in the interim between the two annual general meetings. Only until the Company's next annual general meeting should the additional directors serve in that capacity. The maximum strength set forth in the Articles of Association for the Board of Directors must not be exceeded by the number of directors plus any additional directors combined for a given company.

The Board of Directors appointed a replacement director in the original director's place during his absence for at least three months. The majority of the time, a firm will designate alternate directors to represent non-resident Indians or overseas partners.


Professional Director

A professional Director is one who is qualified on a professional level and does not have any financial ties to the business. These qualified Directors may occasionally be chosen to serve on the board in order to apply their knowledge to the administration of the business.


Runner-Up Director

The appointment of their representative to the board of the concerned company is typically a requirement that banks and private equity investors impose on companies receiving equity support. The Nominee Directors are those individuals who have been nominated.


A nominee director

A nominee director is someone who is designated by a One Person Company's only director to manage the affairs of the OPC in the event of the director's death or incapacitation.

Directors may serve in a private limited company up to a certain number of directors.

It is prohibited to nominate a corporate body of the business entity as a director of a private limited company. As a result, a Company's Directorship can only be granted to one individual. The number of directors in a Private Limited company is limited to fifteen, though this number may be raised further with the passage of a special resolution.


The following entities can have a minimum of how many directors.

  • Minimum of two directors are permitted for private limited companies.

  • Three minimum directors for a limited company.

  • Minimum of one director for a one-person business.


Required residency for directors of private limited companies

The Companies Act, 2013, does not specify any requirements that would prevent somebody from being appointed as a director of the company who is a foreign national or NRI. A minimum of one director must have spent at least 118 days in India during the previous calendar year, according to Section 149(3), which is a requirement for all companies.


Incorporated Company Need for Women Directors

Listed enterprises and limited firms with paid-up share capital of at least Rs. 100 crore or annual revenue of at least Rs. 300 crore are required to appoint at least one woman director.


Add Director FAQs


 1. Who is eligible to serve as a Director for a company?

An entity or a body corporate cannot be appointed as a company's director; only a living individual or individual can be.


2. How many directors can a company have?

The maximum number of directors that may serve on a board of directors for a firm is fifteen, and if the company would like to expand this number, a special resolution may be passed.


3. What qualifications must one have to be a director of the company?

Yes, there are specific protocols, which include the following: The suggested person must be a major He or she must be eligible under the rules outlined in the 2013 Companies Act. The board members should approve the hiring of the new director.


4. Which Form must be submitted in order to name a new Director?

A new director must be appointed using e-Form DIR 22.


5. Is it essential that the Company appoint solely shareholders as Directors?

No, it is not a requirement that the director be one of the shareholders. Any individual may be appointed as a Director of the Company even if they do not own any shares.


6. Is physical presence required to modify the Company's registered office?

No, there isn't a need for that; you can make the additional modification online, or you can speak with one of our professionals about it.

CA Muthu who is Qualified Chartered Accountant is the founder of the company. He has designed this digital CA firm to overcome the major issues faced by client from traditional CA firms. His vision is to provide clients with Quality Services and Quality Consultations.


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