A company’s Articles of Association (AOA) empowers the Board of Directors under sections 161 and 169 of the Companies Act 2013 the right to add, remove, or change the company’s directors. To execute this practice, a clause relating to the appointment of Directors must be included in the AOA of the Company. The person appointed as a director should be eligible for all the relevant provisions and must give his written consent, and the company must register it with itself.
- By these four steps, the appointment of new director can be acquired in private company:
Features
The registration of a Company is quite a tedious process and requires a lot of formalities. A private limited company registration follows a series of steps mentioned below.
Managing Director
Managing director owning the most superior powers, is usually the company owner and the one authorised to manage all the company affairs.
Executive Director
This director is under all-time duty employment for the company and is generally involved with managing all the company affairs.
Additional Director
The Board appoints an additional Director between two AGMs. The tenure of these directors is only up to the Company’s next Annual General Meeting (AGM) date.
Alternate Director
In a general meeting, the Board appoints an Alternate Director to act in place of the original director. In case the original director is absent for up to three months.
Ordinary Director
The ordinary director is responsible for attending all the board meetings and participating in matters before the Board of Directors. These directors are part-time directors.
Increase Borrowing Capacity
Companies benefit from increased borrowing capacity of funds as they can issue secured and unsecured debentures
Features
The registration of a Company is quite a tedious process and requires a lot of formalities. A private limited company registration follows a series of steps mentioned below.
Managing Director
Managing director owning the most superior powers, is usually the company owner and the one authorised to manage all the company affairs.
Executive Director
This director is under all-time duty employment for the company and is generally involved with managing all the company affairs.
Additional Director
The Board appoints an additional Director between two AGMs. The tenure of these directors is only up to the Company’s next Annual General Meeting (AGM) date.
Alternate Director
In a general meeting, the Board appoints an Alternate Director to act in place of the original director. In case the original director is absent for up to three months.
Ordinary Director
The ordinary director is responsible for attending all the board meetings and participating in matters before the Board of Directors. These directors are part-time directors.
Increase Borrowing Capacity
Companies benefit from increased borrowing capacity of funds as they can issue secured and unsecured debentures
Process Of Appointment Of New Director In Private Company
The first step for the appointment of Director in private company is to obtain the consent of the proposed Director to act as a Director in the company, which can be obtained by filling out the Form DIR 2 with all the necessary Documents.
The proposed director must approve via the Form DIR-2 to function as the director.
 The company passes a board resolution for the appointment of new director in private company as well as the appointment of director in private company.
Get a DSC (digital signature certificate) and DIN (director identification number) for the appointment of new director in private company.
Collect the primary documents and data which requires for the procedure and obtain Form DIR-2, Form DIR-12 and Form DIR-8 from the ROC.
Why Add Director To Company
Documents for appointment of director in private company
FAQ's
Few doubts important to be resolved quickly
No, every process involved with the appointment of director in private company accomplishes online. Your work is only to send scanned documents and forms, and all e-forms will be filed electronically on MCA Portal.
A Digital Signature Certificate (DSC) is a tool that allows you to sign all documents electronically. As every procedure for appointment of director in private company completes online, hence DSC is one such crucial step in the process.
DIN stands for Director Identification Number. It is an 8-digit unique number that the Central Government provides to the one aiming to get appointed as the company’s director.
Yes, there is an eligibility criterion to add director in company, and it is as follows:
- The proposed individual must be a major.
- They must qualify as per the laws mentioned under the Companies Act 2013.
- The board members must approve the appointment of the proposed individual.
Yes, an NRI or foreign national may be added as a director in a private company as long as there is at least one director on the board who is an Indian resident. To do so, they must have a valid passport and a DIN.
A private company can have a maximum of 15 directors.
