Appointment of Directors
Get your company’s new frame at ease when ExpertPoint contextualizes all the legal procedures for the Addition of Directors to your company.
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1. Fill Form
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2. Call to Discuss
Our expert will connect with you & prepare documents
3. Appoint New Director
Appointment of new director is complete
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ExpertPoint can help you with addition of directors in your company. Quick and hassle free process
Learn more about Addition of Directors
Addition of Directors
Addition of Directors is one of the key aspects that throws light on the fact that the company is now responsible for higher operational responsibility than earlier which is a clear indication of its growth. Thus as the company grows, the addition of directors has become a non-compromising factor.
Eligibility and Requirements
- In case of appointment of Director, the person being appointed should not be associated with more than 20 companies as a Director and in case of public company, the appointment of director shall not be allowed if he is already a Director in more than 10 public companies.
- The person should be qualified to be appointed as director as per the Companies Act, 2013
- A Digital Signature Certificate (DSC) for the proposed director has to be applied.
- Every person who has been appointed to hold the office of a director shall on or before the appointment furnish to the company a consent in writing to act as such in Form No. DIR-2.
- Interest in other entities is required to be mentioned in case of appointment i.e. All the Details like number of entities in which Director to be appointed has interest in other entity and the percentage of shareholding and amount of Shareholding and the nature of interest shall be mentioned along with CIN Number of the Company in which Director to be appointed has some interest.
- Once the director is appointed a letter of Appointment has to be issued. An Acceptation of the appointment from the Director is also required.
Procedures to appoint new directors
Step 1: To apply for Digital Signature Certificate(DSC)
For a person to become a director of the company he/she must have a Director Identification Number which is given after applying for a Digital Signature Certificate(DSC). To apply for the DSC, the following proofs of the person are required.
Identity proof:
- PAN card (Indian Nationals)
- Passport (Foreign Nationals/NRI)
Address proof:
- Voters ID card
- Mobile / Telephone bill
- Passports
- Driving License
- Electricity bill
- Bank Statement attested by the banker etc.
Step 2: To apply for a Director Identification Number(DIN)
The electronically signed Digital Signature Certificate must be attached with a DIN application DIR-3 and it should be filed at the Ministry of Corporate Affairs(MCA). It is usually an instant process but occurrence of any error during the process may take up to 2 to 3 working days. Once obtained, the DIN serves as a lifetime identification number of the Director.
Step 3: Call board meeting, General Meeting and Appoint Director
A ‘director’ can be appointed in a general meeting by the shareholders. Once appointed, the director can hold office as per terms of appointment. Where a general meeting could not be convened, an ‘additional director’ can be appointed by the board of directors if such an appointment is authorized by the Articles. However, the tenure of an ‘Additional Director’ shall be only be till the date of next Annual General Meeting.
Only a person with valid DIN can be appointed by a company as a director. Before appointment, the person has to furnish to the company a consent in Form DIR-2.
Step 4: File DIR-12 Form with Registrar
DIR-12 Form has to be filed with following attachments
- Declaration of the appointee director, managing director, in Form No. DIR-2 is mandatory to attach in case of appointment of a Director / Manager / Company Secretary / CEO / CFO.
- Interest in other entities of director it is mandatory to attach in case number of entities entered is more than one.
- Letter of Appointment Along with acceptation of Director is required
Timelines and next steps
The Appointment of Directors to a company involves two processes. The first is obtaining a DIN for the proposed director. The next is convening a extra-ordinary general meeting, passing necessary resolution to appoint and then file the appointment with ROC.
The above two processes are done at the scale of the company and it takes 4 – 7 working days. In an individual aspect the person applying for the post of Directors must have a DSC and DIN. ExpertPoint advises both the processes simultaneously with accurate details so that the changes are documented and intimated to ROC at the first approach.
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