Director is a person who directs, oversees, or controls, manages the affairs of the Company.
A new director can only be appointed by the Articles of Association of a company are the source of authority from where the Board of Directors draws the right to add new directors to the Board or remove existing ones, as per section 260 and section 284 of the Companies Act, 1956.
Director is a person appointed to the Board of a company to perform the duties and functions of a company following the provisions of The Company Act, 2013.
The Board of Directors means a group of those individuals elected by the shareholders of a company to manage the affairs of the company.
As per section 149 (1) (a), of the Companies Act, 2013, the minimum number of directors for each type of company as follows:
Type of company |
No. of Director required |
| One Person Company | 1 |
| Private Limited Company | 2 |
| Public Limited Company | 3 |
A compliance manager will get in touch with you to collect your documents along with a simple checklist. You need to fill up that checklist and submit along with your documents for verification. Our team of experts will verify the documents provided by you and take the procedure further. The compliance manager dedicated to you will keep you updated on the progress of Company Registration throughout the process.
Once your documents along with Checklist are submitted, we shall proceed with the application of your Digital Signature and subsequently the approval of name for your Private Limited Company. You may suggest up to three names of your choice. Names should be unique and suggestive of the Company’s business. We will proceed with application for name for your Private Limited Company in Part A of SPICe Plus form.
We will draft the MOA (Memorandum of association) and AOA (Articles of association). We will file the incorporation documents with MCA through in part B of a form called “SPICe Plus (SPICe +)” along with the subscription statement. Usually, MCA approves the forms within 4-5 days once filed and issues Incorporation Certificate with CIN. PAN & TAN are allotted alongside. You may then proceed to open your Company Bank Account.
Recently one of the two directors of my Private Limited company resigned from his term of office and the company is left only with one Director. What should I do in such a case?
In a private limited company, the minimum number of shareholders is 2. If the total number of directors is less than the number prescribed, the company shall appoint a director(s) in the company to fulfill the requirement within 6 months from removal/resignation/death of the concerned director.
What are the requirements for becoming a director of a company?
The Director of a Company must be above the age of 18 and must have a Director Identification Number. The person can be an Indian National or a Foreign National.
Can a Body Corporate be appointed as Director?
No, a body corporate can not be appointed as a Director. Only an individual (natural person) can be appointed as a director in a company.
Are NRI’s / Foreign Nationals can be appointed as a director in an Indian Company?
Yes, an NRI or a foreign national can be appointed as a director in an Indian Company after obtaining the DIN. However, on the board of the director, there must be at least one director who is an Indian resident.
What is the minimum number of Directors required for a company?
A Private Limited Company must have a minimum of two Directors at all times. Where a One Person Company requires to have a minimum of one Director at all times. On the other hand, a Public Limited Company must have a minimum of three Directors at all times.
What are the documents required for obtaining DIN?
A Digital Signature, Signed Affidavit from the proposed Director, and information about the identity and address of the Director are required.
For the appointment as a Director, does the person require to apply for another DIN if he already has one?
No, if the person to be appointed as a director already has a DIN then he is not required to obtain another DIN. It is permanently allotted and can be used for a person’s subsequent appointment in any company/LLP.
What is the procedure for removing a Director from a company?
A Company can remove a Director by passing an ordinary resolution in an Annual General Meeting or an Extraordinary General Meeting. Ordinary resolutions can be passed by a simple majority. Once a resolution is passed, the Company must file the Resolution along with the necessary forms to the Ministry of Corporate Affairs to remove a Director.
Do I need to sell/transfer my shares while ending my tenure as director in a company?
No, even after the end of the tenure as director, a person can hold the shares in the company. However, if the shares in the company are subscribed as a condition to appointment as provided by AoA, the shares are also required to be disposed of in the manner provided in AoA.
Still, have confusion?
Don’t worry!! Our expert will help you to choose the best suitable plan for you. Get in touch with our team to get all your queries resolved. Write to us at info@senixalegal.com or call us @+91 9999347181.
Senixa Legal is a body comprising of professionals with intellectual capability.
We are focused in each possible way so that we can offer you the best tax planning alternatives, moving through a conservative approach towards aggressive, counting on the risk factor too so that you get the best option to choose for.
By continuing past this page, you agree to our Terms of Service, Cookie Policy, Privacy Policy, Refund Policy and Content Policies. © 2020-@senixa INDIA Private Limited All rights reserved.
