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For those who want to make a positive impact on society, establishing a section 8 company is a good idea. Section 8 companies are non profit organizations that promote arts, science, environmental protection, religion, sports, social welfare, charity and education.
If you have made up your mind that you want to open a section 8 company, you must ensure you meet all the regulatory and legal requirements, such as ensuring the required number of directors is in place. Do you know how many directors are required in a section 8 company? If not, read this blog post to find out!
Section 8 Companies are registered under the Companies Act 2013. The Act requires the section 8 companies to have a minimum number of directors. The minimum number of directors required in a section 8 company depends on whether the company is a public limited company or a private limited company.
If a section 8 company is registered as a private limited company with the Registrar of Companies (RoC), then it must have a minimum of two directors.
If a section 8 company is registered as a public limited company with the Registrar of Companies (RoC), then it must have a minimum of three directors.
Some basic rules for appointment of section 8 company directors are as follows:
All Section 8 Companies’ Directors must have a Director Identification Number.
They must also have a Digital Signature Certificate.
At least one director in a section 8 company must be an Indian resident.
While incorporating a section 8 company, the directors are appointed by the shareholders.
After the section 8 company has been incorporated, a board meeting must be held for appointment of a director.
Section 8 companies do not need to appoint independent directors. They do not have to comply with the independent director mandate under section 149(1) of the Companies Act, 2013. This exemption was granted vide exemption notification dated June 5, 2016.
There is no maximum limit for the number of directors a section 8 company can have under Companies Act 2013. However, the maximum limit may be specified in the Section 8 company’s articles of association.
A Section 8 company’s shareholder can also be its director.
Section 8 company is a type of company registered under Companies Act 2013. It is established for the purpose of promoting non-profit objectives such as social welfare and education. To register a section 8 company with the RoC, the requirement for appointment of minimum number of directors must be met by the shareholders. Directors in a section 8 company are especially important because they ensure that the company’s vision never falters from helping people. The more directors you have, the more focused your company will be. Therefore, you always need to have directors to run a section 8 company.
Q1. Can a Section 8 company be registered as a one person company?
A. No, a section 8 company cannot be registered as a one person company.
Q2. Does a Section 8 company need to appoint an independent director?
A. No, a section 8 company is exempted from the requirement of appointing an independent director.
Post Modified Date: 16-01-2025
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.
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