Appointment of Director
Appointment or Add a new Director to your company online with ease. Get expert help with MCA filings, DIN, DIR-12, and legal compliance. Trusted by startups and enterprises.
Fast ROC filing services to add a new director starting from Rs.4599*.
Key Requirements for Appointment
- DIN (Director Identification Number)
- Digital Signature Certificate (DSC)
- Consent to act as a Director (Form DIR-2)
- Disclosure of Interest (Form MBP-1)
- Board and/or Shareholder Resolution
- MCA Filing (Form DIR-12)
We assist with obtaining DIN, DSC, preparing resolutions, and completing e-filing.
Our Services Include
- Drafting Consent Letters (DIR-2)
- Preparing Board/Shareholder Resolutions
- Obtaining DIN (if not available)
- Obtaining Digital Signature (if not available)
- Filing Form DIR-12 with MCA
- Advisory on legal compliance and director roles
- End-to-end documentation support
What is Appointment of Director?
Directors are the key decision-makers of a company. Their appointment plays a crucial role in shaping the vision, strategy, and operations of your business. Whether you're starting a new company or restructuring an existing one, appointing the right director in compliance with the Companies Act, 2013 is essential.
The appointment of a director is the process of adding a new member to a company's board of directors. The board of directors is responsible for overseeing the management and direction of the company, making strategic decisions, and ensuring that the company is run in accordance with its mission, vision, and values.
What is a Director?
A Director is a person appointed to the Board of a company to manage its affairs. As per the Companies Act, 2013, every company must have:
- Minimum 2 directors in a Private Limited Company
- Minimum 3 directors in a Public Limited Company
- Minimum 1 director in a One Person Company (OPC)
At least one director must be an Indian resident.
Types of Directors
The Companies Act, 2013 recognizes different types of directors, including:
Executive Directors
An executive director is a full-time employee of the company, actively involved in the company's day-to-day operations and management. They hold greater responsibility compared to non-executive directors.
They often hold specific executive roles, such as Chief Executive Officer (CEO), Chief Financial Officer (CFO), or Chief Operating Officer (COO).
Non-Executive Directors
Unlike executive directors, they do not participate in the company’s day-to-day operations or management. They provide independent oversight to the company’s board and its management.
Managing Director (MD)
This is a director who has substantial powers of management. The appointment, powers, and responsibilities of a Managing Director are usually specified in the Articles of Association or by a resolution of the Board of Directors.
Whole-time Director (WTD)
Similar to a Managing Director, a Whole-time Director is responsible for the day-to-day operations of the company. The appointment and terms of service are usually mentioned in the Articles or through a Board resolution.
Independent Director
Independent Directors are appointed for listed/public companies to ensure governance/ provide unbiased and impartial advice to the Board. They should meet specific eligibility criteria and are appointed for a fixed term.
Additional Director
An Additional Director is appointed by the Board between two annual general meetings. Such an appointment requires the approval of the shareholders at the next general meeting.
Nominee Director
Nominee Directors are appointed by certain stakeholders, such as financial institutions or venture capitalists, to represent their interests on the Board.
Appointment in General Meeting
To appoint a director, the company is required to pass a resolution in a general meeting. The company may pass a resolution to appoint a director in an Annual General Meeting (AGM). If the company decides to appoint a director in the middle of the year, it may appoint a director by passing a resolution in an EGM (Extraordinary General Meeting).
In such a case, a company must conduct a board meeting to pass a resolution for conducting an Extraordinary General Meeting (EGM). The company must pass a resolution for appointing a new director. The company should file the resolution for the appointment of the director in Form MGT-14 with the Registrar of Companies (ROC) within 30 days of passing the resolution.