A Company acts through the agency of natural persons, it is a legal entity represented by an association of people. The Directors
of a company and the management of a company is entrusted to the Board of Directors. However, the Appointment of Directors can be required for a company from time to time based on the requirements of the shareholders of the business. This article will enlighten you about the Appointment of a Director.
What is the meaning of Director in Company?
A 'Director' is a uniformly elected individual by a Company; a person appointed or elected according to law, authorised to manage and direct the affairs of company policies.
Types of Director in Company
The following are the types of Director in Company:
- Managing Director
- Whole-time Director or Executive Director
- Ordinary Director
- Additional Director
- Alternate Director
- Professional Director
- Nominee Director
Conditions for Appointing Directors
The following conditions are applicable when appointing a director:
- An individual should not have been sentenced to imprisonment for any period, or a fine imposed under several statutes.
- An individual should not have been detained or convicted for any smuggling activities, under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974.
- An Individual should have completed twenty-five (25) years of age, but be less than the age of seventy (70) years.
- An individual should hold Indian Citizenship.
Procedure for the Appointment of a Director
- Hold a Meeting of the Board of Directors
- Consent and Declaration from the Proposed Director
- Obtaining DIN and Digital Signature Certificate
- Hold a General Meeting
- Filing of Returns with the ROC
- Obtain Form MBP-1 from the Appointed Director
- Making Necessary entries in Register of Directors
- File Necessary Amendment Application to GST, Tax Authorities Other regulators
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