Addition of New Directors

A director is a person appointed by the shareholders to manage the company's operations in accordance with the MOA and AOA. Because it is an artificial person, the company can only act through the agency of a natural person. Therefore, a director must be a living person, and the Board of Directors is in charge of managing the corporation. The appointment of the Directors may from time to time be required, depending on the demands of the company's shareholders.

How to add a Director to a Company?

A private limited company's operations are significantly influenced by its board of directors. Daily choices and judgements about how to administer the company are made by the directors. The directors are the significant people in whom the company's shareholders place their confidence to handle their investments. The legal steps an Indian corporation must take in order to replace its directors will be covered in this article.

The first step is to obtain the consent of the proposed directors: Before recommending the nominated director to the Company's Director, the Company must get the Form DIR-2 to confirm that they have their permission. This is due to the Form DIR-2's significance as a legal document.

Digital Signature Certificates of the Proposed Directors:The company's potential directors must get a DSC if they don't already have digital signatures. Apply for DSC now.

Get the Director Identification Number (DIN): If the indicated person does not already have a DIN, the company ought to ask for it. This resolution must be linked to the form DIR3. This previously assigned DIN is continuously usable. Anyone who is at least 18 years old may apply for a DIN. Furthermore, it makes no difference from which nation the proposal originates. As a result, anyone can apply for a DIN and be appointed as a director of a private limited company in India, including Indian citizens, non-resident Indians, and foreigners.

The organization is required to obtain all KYC paperwork as well as documentation of the necessary academic credentials in order to fill the position. To hold the post of Director in a firm, there are no educational requirements in India.

Who is a Director in a Private Limited Company?

According to the Companies Act of 2013, a director is a person who is appointed to a board of directors for a company. The Board of Directors is a team that oversees a company's operations and is selected by its shareholders. A business is an artificial legal person that was created by law, and as such, it can only function via the agency of natural persons. Only people can act on behalf of the directors, who are largely accountable for the company's decisions. The Board of Directors is the organization entrusted with overseeing a company's management.

According to the other definitions, a director is a person who supervises, oversees, or directs anything. An one who supervises, controls, or directs is known as a director. He is a legal representative who is qualified to lead and oversee the Company's operations. He may be elected or appointed by the law. He is a person appointed by a company's shareholders to set the company's policy.

Types of Director in Company

Managing Director

The articles of incorporation of a company, a contract with the company, a resolution passed at the annual meeting, or a decision taken by the board of directors all define a managing director's status as a director. because the board of directors has great control over how the company's operations are conducted.

Whole-time Director or Executive Director

A whole director or executive director is someone who works full-time for the company.

Ordinary Director

An uncomplicated director is one who just takes part in the Board of Directors' discussions on the problems raised during board meetings of a company. These Directors don't hold managing director positions or full-time jobs.

Additional Director

A third director must be appointed by the board of directors to serve in the interim between the two annual general meetings in accordance with the company's articles of organization. The new directors shall have no further authority to act in any capacity until the next annual general meeting of the Company. The number of Directors and any Additional Directors combined for any Company shall not exceed the maximum strength for the Board of Directors specified in the Articles of Association.

In order to cover the first director's absence of at least three months, the Board of Directors chose a replacement director at the annual meeting. The bulk of the time, alternate directors are used to represent non-resident Indians or a company's international partners.

Professional Director

A director with professional credentials and no financial interest in the company is said to be a professional. These seasoned Directors may occasionally be added to the team to share their expertise with the management of the company.

Nominee Director

For banks and private equity investors to provide equity backing to a company, they often demand that their representative be appointed to the Board of the concerned company. The title given to these nominees is "Nominee Director."

In relation to One Person Companies, a nominee director is a person selected by the sole director to lead the One Person Company in the case of the sole director's decease or incapacitation.

Maximum and Minimum Number of Directors in Private Limited Company

It is not possible to appoint a corporate body of the business entity as a director in a private limited corporation. Therefore, only individuals may hold the role of Director within a firm. More directors may be added by passing a special resolution, however a Private Limited business may only have a maximum of fifteen directors.

How many minimum directors can the following entities have?

Private Limited Company- Can have a minimum of two directors.

Limited Company- Minimum three directors.

One Person Company- Minimum one director.

Director in Private Limited Company – Residency Requirement

According to Section 149(3), every firm must have at least one director who has spent a minimum of 108 days in India throughout the course of the previous calendar year. The Companies Act of 2013 states that there is no restriction that prevents anyone from being appointed as a director of the company who is a foreign national or NRI.

Women Director Requirement in Company

Any listed company or limited company with a paid-up share capital of at least Rs. 100 crore or a revenue of at least Rs. 300 crores must appoint at least one woman as a director.