Online Procedure for Appointment of a Director as per the Companies Act, 2013
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A Company may appoint a new Director for several reasons. Sometimes it is because of hiring new expertise on the board or for the requirement of the company’s shareholders. The recommended CA panel will complete the procedure of the Director’s Appointment following the MoA-AoA of the particular company & the Section 2(34) provisions of the Companies Act, 2013.
As per the Act, an One Person Company, Private Limited Company, and Public Limited Company requires at least 1, 2, and 3 directors in-charge respectively. Apart from that, an organization can appoint a new director on numerous grounds:
- Bringing in new Talent and Proficiency
- Expanding business venture
- Death / Removal / Retirement of an existing director
- Requirement of woman director in the company (for companies with more than Rs.300 Crore annual turnover)
- Appointing a Nominee Director by the Central Govt. as per Section 161(3) of the Act (in case of mismanagement & oppression)
- Appointing an Independent Director following Section 149(6) of the Act
In a private company, following their Article of Association (AoA), the shareholders can appoint an individual as the director of that particular organization. In case of a Nominee Director, the Govt. of India carries out the necessary procedure. The individual being appointed as the director, should fulfill the following criterias:
- Age between 25-70
- Resident of India (Staying in India for not less than 12 months at a stretch)
- Not have been sentenced to imprisonment for any period
- Not have been detained under the Conservation of Foreign Exchange & Prevention of Smuggling Activities Act, 1974
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Required Documents for Appointment of Director process
- Self attested Identification Proof
- Photocopy of Passport
- Residential Proof
- Passport Size Photograph
- Director Identification Number (DIN)
- Digital Signature Certificate (DSC)
- PAN Card (for an Indian Citizen/NRI/Foreigner)
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FAQ
Primarily, the shareholders of an organization can appoint a director by following the provisions of Section 2(34) of the Companies Act, 2013. The Govt. of India may appoint a Nominee Director in case of mismanagement or oppression.
An individual being appointed as a Director is mandated furnish the following the documents to the Ministry of Corporate Affairs (MCA) :
- Self attested Identification Proof
- Photocopy of Passport
- Residential Proof
- Passport Size Photograph
- Director Identification Number (DIN)
- Digital Signature Certificate (DSC)
- PAN Card (for an Indian Citizen/NRI/Foreigner)
As per the guidelines of the Companies Act, 2013 and the Ministry of Corporate Affairs of the Indian Govt. there is a specific limit of the number of the appointed directors for different types of organization.
- For One Person Company (OPC) – 1
- For Private Limited Company (Pvt. Ltd.) – 2
- For Public Company – 3
Following the provisions of the Companies Act, 2013, an Indian organization can appoint a Foreigner or NRI as a director if the individual is staying in India for the last 182 days or more at a stretch. To appoint an NRI or foreigner, it is mandated to have an Indian resident Director on board.
Yes. Section 165(1) of the Companies Act, 2013 states that an individual can hold upto 20 directorships in organizations.