How to appoint Director in a Company?

Every company is required to appoint director as per the provisions laid down under the Companies Act, 2013. A director is a person or individual who is responsible for managing, directing or controlling the affairs of the company. A director is appointed to perform various functions and duties as per the rules and regulations of Companies Act, 2013. A group of directors are also known as the Board of Directors.

Directors play a very essential role in running and managing the company. Hence,Their appointment is very important for the growth of the business. Every company must have a Board of Directors which must consists of individuals taking the position as directors.

Minimum Number of Directors Required in a Company

In different type of entity, criteria for minimum number of directors is also different. You can find below the tabular chart for minimum number of directors required in different types of entities:

Note:

• A company may appoint a maximum of 15 directors. However, if it wants to appoint more than 15 directors, then special approvals are required as per the law.
• Every company must have at least one resident director who has stayed in India for at least 182 days during the financial year.

Appointment of Directors under Companies Act, 2013

The appointment of directors in various types of companies is made as per the Companies Act, 2013

Qualification of Directors

There is no specified requirement of any qualification for the Directors of any company. However, the Companies Act through Articles of company may stipulate qualification for director. Further, the said act also limit the specified share qualification of directors which can be provided by a public company or private company to be five thousand rupees.

Documents Requirement for appointment of a person as Director

• Digital Signature Certificate: Every person who wish to become a director or is a director must compulsorily hold a Digital Signature Certificate without which his appointment cannot take place.
• Director’s Identification Number (DIN): A person who wish to become a director must have DIN which can be applied through form DIR-3 which needs to be filled up on MCA Portal and attaching the following documents:
• A Passport size photograph
• Identity proof including PAN Card
• Address Proof
• Form DIR-12: This is the e-form which is used for appointment of director. Hence, once you have obtained DIN and DSC, this form needs to be filled up by attaching the following documents:
• Appointment Letter from the Company
• Resolution passed by Company for appointment
• DIR-2 (Consent to act as director of the company)
• DIR-8 (Intimation by Director about his interest in other entities and Disqualification under section 164 of the Companies Act, 2013)

After filling up DIR-12 and attaching the above documents, this e-form has to be filed with ROC within 30 days of his/her appointment.

Takeaway

Directors play a very important role and holds a crucial position to facilitate smooth functioning of the company. Companies Act, 2013 has provided various rules for appointment of directors with their roles and responsibilities.

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