Addition of New Directors

In company when we appoint a new director, a company must file a copy of the resolution within 30 days to registrar of company. Board of Directors of the company will elect the new director for a company to manage the company affairs. Based on the necessity of the business or shareholders the appointment of directors will take place.

How to add a Director to a Company?

The Director of the company play an important role for its functioning in Private limited company. Daily decisions of the company are made by the director as he plays as key person where shareholders trust and invest their money. In Annual General Meeting the it entitle to seek appointment as a permanent director.

The first step is to obtain the consent of the proposed directors:

Individuals who wish to become a director for the company need to provide a declaration as Form DIR -2.This Form is the important document for proposing an individual as a director of the company.

Digital Signature Certificates of the Proposed Directors :

Digital Signature Certificates is secure and authentic way to submit a document electronically. If the proposed Director of the company do not have yet Digital Signature they should obtain it by applying it.

Get the Director Identification Number (DIN):

If the proposed director has no DIN then first the company should apply DIN for proposed person. A unique Identification Number which is allotted to an individual who is appointed as a director of a company is nothing but DIN. After the DIN application fee is paid e Form DIR-3 will be processed. Once DIN is allocated the director can use DIN for the life time. The person who is above 18 years can apply for DIN .Nationality does not matter for the proposed person whether the persons are Indians, Non –resident Indians or foreign nationals in private limited company.

Along with the necessary qualifications the company must require all the KYC documents as per the jobs. In India there is no minimum qualification for the post of Director.

Who is a Director in a Private Limited Company?

The companies Act 2013,the term Director means the person who is appointed as the Board of the company. The Directors in the company are those individuals who are elected by the shareholders of the company to manage the company affairs. A company is nothing but a artificial person and is created by the law, and it act through the agency of natural person. The Board of Directors are those individuals were the management of the company is trusted.

In other words the Director is a person who controls, manages or directs something in the company. Under the Act of law Shareholders of the company elects the director to direct the policies of the company .

Types of Director in Company

Managing Director

Managing Director is a professional responsible for successful leadership in the company to manage company’s business. Managing Director has maximum power to take important decision along with the board of Directors. The overall decision and taking charge of running business or organization is by Managing Director.

Whole-time Director or Executive Director

A whole-time director refers to a director who is in full time employment of the company and is also entitled to receive remuneration. A whole-time director is appointed for those companies who has paid-up share capital of ten cores or more.

Ordinary Director

An Ordinary Director are not whole time director or managerial Directors .These Directors only attends the Board meeting of the company and involve in the matters that are put before the boards .

Additional Director

An Additional Director is a director appointed in the Board Meeting by the Board of Directors. These Directors can hold the office till next annual general meeting. Article of Association if authorizes ,board can appoint any person as additional Director except the person who fails to get appointed in annual general meeting The maximum number of Directors and Additional Directors together are fixed for the board of directors by the Article of Association which shall not exceeds its strength .

An additional Director has the same power of that as Director They can also be appointed as the permanent directors in annual general meeting. These directors are subjected to have limitations and obligations same as that of Director.

Professional Director

A professional Director means a person who is appointed t the Board of Directors Cooperative by virtue of his being an expert in the field of accounting, finance, banking, technologies, law, information and so on. These Directors does not have any interest in the company they just used to utilize their expertise in the company managements.

Nominee Director

According to the Companies Act, 2013 defines Nominee Director as a Director nominated by the financial institution of pursuance of the provisions of any law or appointed by the Government.

A Nominee director in a company who has been appointed by financial institutions, banks or investors to form part of the Board of Directors.
The Nominee Director is an individual nominated by the Sole Director of one Person Company To take all the affair of the company in case of death of insured person.

Ordinary Director

An Ordinary Director are not whole time director or managerial Directors .These Directors only attends the Board meeting of the company and involve in the matters that are put before the boards .

Maximum and Minimum Number of Directors in Private Limited Company

A Private Limited Company has minimum of at least two directors .An individual’s only can appoint as a Director in a company not the corporate body entity. A Limited Company can have maximum fifteen Directors and the number can be increased by passing a special resolution

Director in Private Limited Company – Residency Requirement

According to the Section 149(3),that provides at least one director of the company who stay in India for total period of time which is not less than one hundred eighty two days in the previous year calendar. There are no such requirements according to the companies Act, 2013that is prohibiting the appointments of foreigner or NRI as a Director of the company by having one Director Indian in Boards.

Women Director Requirement in Company

According to the Section 149 of the Act 2013 at least one women director is to be appointed in the Limited companies and in limited companies and listed companies and other public company having paid –up capital 100 crore or more.