Appointment of New Director

Overview

The Articles of Association of a company are the source of authority from where the Board of Directors draws the right to feature new directors to the Board or remove existing ones. The Articles of Incorporation must provide for the addition of Directors. The person appointed must be eligible as per the relevant clauses within the Articles of Association and must give his consent to be a director in written form which the company must register with itself.

Our Process

Step 1

DSC Application

Step 2

DIN Application

Step 3

Sign Consent Letter

Step 4

File DIR 12 Form

Step 5

Appointment is done

Choose Your Package

All Inclusive Pricing – No Hidden Fee

Basic
- ₹ 1750
- - Documents Preparation
  - DIR 12 form filing for one director
- Purchase Now

Premium
- ₹ 3750
- - Digital Signature Certificate (DSC)
  - Director Identification Number(DIN)
  - Documents Preparation
  - DIR 12 form filing for one director
- Purchase Now

Ultimate
- ₹ 4500
- - Digital Signature Certificate (DSC)
  - Director Identification Number(DIN)
  - Documents Preparation
  - DIR 12 form filing for one director
  - Director Regularisation in AGM
- Purchase Now

Benifits

Get new talent on board

The business world is extremely competitive which is why it's so important for companies to remain on top of their game in the least times. As businesses grow and evolve, they undergo several upheavals with reference to strategies, policies, and objectives. Therefore, sometimes companies got to get new talent on board to assist formulate new strategies and business plans. Furthermore, as new alliances form between corporations, new talent is required to bridge gaps and make sure the smooth functioning of the organization. As companies expand and venture into new areas, team leaders and experts can move from their managerial position into the role of a director to assist the company stay on track.

The inefficiency of existing directors

The existing directors may or might not be ready to serve the company faithfully, in certain cases. In such circumstances, maybe even thanks to retirement, family problems, other personal reasons, or physical ailments, the company adds new directors to form sure their productivity is unaffected. Hence, from time to time, companies got to process the termination and addition of the latest directors, so as ensure their continued growth and success.

No dilution of ownership

Directors are primarily responsible for the day-to-day operations of a company. Adding or appointing an additional director helps the shareholders assign more operational responsibilities without losing any strategic control. As a Director doesn't subscribe or own any share capital, the ownership and therefore the voting rights that come alongside it, remain with the shareholders, preventing any dilution.

To meet the statutory limit

In certain cases, due to sudden death or plans of retirement from existing Directors, companies come short of the minimum required directors as prescribed by the Companies Act. Therefore, such Private and Public companies got to appoint new directors within 6 months to continue functioning as a legally valid entity.

Documents Required

Self-attested copy of PAN

Consent to act as director in format of DIR-2

Copy of resolution passed by the shareholders

Notice for shareholders meeting

PAN card: Mandatory for an Indian Applicant

Passport: Mandatory for a foreign Applicant

Self-attested copy of identity and address proof such as passport or Aadhar card or Election card

Clear All Your Doubts !

Can a Director resign himself or herself from the company?

Yes, any director can voluntarily resign from the company if they wish to do so. In such a case, they must first serve a notice of resignation to the Company stating their reason for resigning and also mentioning the date of resignation.
Furthermore, they must also file a form to intimate the MCA regarding their impending resignation from the company. This e-form must be filed within 30 days of the resignation. Furthermore, if the vacancy results in a shortage of the minimum required Directors, the Company must appoint a new Director within 6 months to continue functioning.

Are there any eligibility criteria for adding a new Director?

Yes, there is and it is as follows
The proposed individual must be a major.
He or she must qualify as per the laws mentioned under the Companies Act, 2013.
The Members of the Board must consent to the appointment of the proposed individual.
It must be noted that the Companies Act does not mention any educational qualification in order to be eligible to become a Director.

Should I apply for another DIN, if I already have one?

Can a Company appoint another Corporate Body as its working Director?

As per the Companies Act, 2013, only individuals can serve as Directors of Public and Private Limited companies. Therefore, a corporate body cannot be appointed as a Director of any company in India. Therefore, if any LLP or Private Limited Company wants to serve as a Director, they must send a representative and then appoint that person as a Director.

Can a Company add a Foreigner or NRI as a Director?

Yes, an NRI or Foreign National may be added as a Director in a Private Limited Company. In order to do so, they must have a valid Passport and a DIN. In case they do not have a DIN, they must apply for the same via the Company they wish to become a Director of. However, as per the Companies Act, 2013, at least one Director on the Board must be an Indian resident and the rest may be foreigners or NRIs.

Let’s start your business journey with Book My Consultant.

Interested