The Directors are defined under section 2(34) of the Companies Act, 2013 as “a director appointed to the board of a company”. A director is a natural person appointed by the Company to give directions to the Company in which he is appointed.
The following steps are to be followed for the appointment of a director:-
Step 1: The proposed director should obtain a DSC, if they do not have a valid DSC.
Step 2: The proposed director should obtain a DIN in Form DIR-3, if they do not have an active DIN.
Step 3: The company should conduct a general meeting to pass a resolution for appointing the new director.
Step 4: The proposed director should consent to the company for their appointment as a director in Form DIR-2. Once the company obtains the DIR-2 from the proposed director, the person is appointed as a director.
Step 5: After the director is appointed, the company should issue the appointment letter to the director.
Step 6: After the letter of appointment is issued, the company must file forms with the ROC about the appointment within 30 days.
The following forms are required:-
MGT-14 – Resolution passed in the general meeting regarding the appointment of the director
DIR-2 – Consent received by the proposed director to hold the position of a director in the company
DIR-12 – Particulars of appointment of the director.
The following documents are needed for the appointment of a director:-
- Passport Identification proof (PAN card)
- Proof of residence (electricity bill, rental agreement, Aadhar Card, voter ID, passport, driving license) Passport size photograph
- Digital signature certificate of the proposed director
- PAN card: mandatory for an Indian applicant
- Passport: mandatory for a foreign applicant.
How many Directors can a Company have?
A company can have at least two directors and a maximum of fifteen directors and if the company wants to increase the number of directors it can be further done by passing a special resolution.
