Appointment of Director

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A company is an artificial judicial person that is run by natural persons known as directors. The board of directors is a collective body of individual directors, time-to-time companies hire directors based on the requirements.

 

Legally, the appointment of directors must be as per the Companies Act, 2013. Here you will know who can be a director and how to appoint them.

Eligibility Criteria to Become a Director

The director must be above 21 years of age, and have a Digital Signature Certificate (DSC) and Director Identification Number (DIN).

The shareholders of a company elected directors to manage the company affairs according to the Memorandum of Association (MoA) and Article of Association (AoA). A private company should have a minimum of two directors and a maximum of fifteen directors.

Process of Adding a Director

The following is the process of adding a director to a company:

 

1. Check AoA before appointing a director. If there is no clause for adding a director, then modify the provisions.
   
2. Pass a resolution in an Annual General Meeting or if a company wants to appoint a director in the middle of the year then pass an Extraordinary General Meeting.
3. The proposed director must apply for the DIN and DSC number (if the individual does not have it already).
4. After getting the DIN number, the proposed individual must fill a Form DIR-2 to give consent to work as a director.
5. File Form DIR-2 and DIR-12 after appointing the director. The form must be submitted to the Registrar of Companies within 30 days.