Appointment of Director
Director of a company is a person elected by the shareholders for managing the affairs of the company as per the Memorandum of Association and Articles of Association of the company. Since a company is an artificial judicial person created by law, it can only act through the agency of natural persons. Thus, only living persons can be Directors of a company and the management of a company is entrusted to the Board of Directors. Appointment of Directors can be required for a company from time to time based on the requirements of the shareholders of the business.
To appoint a director, the person proposing to become a Director must obtain a digital signature certificate (DSC) and director identification number (DIN). DIN can be obtained for any person who is above the age of 18. The nationality or residency status of the DIN applicant does not matters. Hence, Indian Nationals, Non-Resident Indians and Foreign Nationals can obtain DIN and be appointed as Director of a company in India.
Documents Required for Director Appointment
Documents required from Director
PAN Card, Residence Proof, DIN declarations, Consent letter for appointment etc.
Documents required from Company
Resolution for Appointment and Letter of Appointment.
Types of Director in a Company
Managing Director
Managing Director is a Director, who by virtue of Articles of Association of a company or an agreement with the company or a resolution passed in its general meeting, or by its Board of Directors, is entrusted with substantial powers of managed of affairs of the company.
Executive Director
Executive Director is a Director, who is in full-time employment of the company. Hence, executive directors are deeply involved with the management of the company and managing affairs of the company.
Additional Director
Additional Director is someone appointed by the Board of Directors between two annual general meetings subject to the provisions of the Articles of Association of a company. Additional Directors can hold office only upto the date of next annual general meeting of the Company.
Ordinary Director
Ordinary Director means a simple Director who attends the Board Meetings of a company and participates in the matters put before the Board of Directors. These Directors are neither whole-time Directors or Managing Directors.
Alternate Director
Alternate Director is someone appointed by the Board of Directors in a general meeting to act for a Director called the original director during his/her absence for a period of not less than three months. Generally, alternate Director are appointed for a person who is a Non-Resident Indian or Foreign Collaborators of a company.
Time Line
Registered FAQ
What is Consent Letter from Director?
What Forms to be filed for adding a director in a Company?
What is the fees and charges for appointing a director?
| Nominal Share Capital | Fee applicable |
|---|---|
| Less than 1,00,000 | Rupees 200 |
| 1,00,000 to 4,99,999 | Rupees 300 |
| 5,00,000 to 24,99,999 | Rupees 400 |
| 25,00,000 to 99,99,999 | Rupees 500 |
| 1,00,00,000 or more | Rupees 600 |
What is a Minimum number of directors required in a company?
One Person Company: One Director.
Public Limited Company: Three Directors.
What is a Maximum number of directors allowed in a company?
One Person Company: 15 Directors.
Public Limited Company: 15 Directors.
The company can appoint more than 15 directors by following Companies Act procedure.
What are different types of directors?
B).Non Executive Director does not dedicate his whole time in the day to day functions of the Company. Only attends Board Meetings and guide the company in its policy matters.
C).Additional Director is a director who is appointed at any time between two Annual General Meeting of the Company. Such additional director need to be confirmed as director in next coming AGM.
Who can be appointed as a director of Company?
Who cannot be appointed as a director of Company?
What is a minimum age to become a director?
What is a maximum age limit to for a director?
