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A company can change its director by appointing a new director or resigning the old director of the Company. This change can be done by the company at any time after the incorporation of the company. Change in director includes mainly two categories: Appointment of Director and Resignation of Director.
Any company appoints a new director in the Company with the approval of shareholders in the General Meeting of the company. Once the resolution will pass in the meeting, the company is required to intimate the ROC about the appointment of the director in Form DIR-12 within 30 days from the date of his appointment.
What is Resignation of Director?
Any director of the Company can resign from the post of the directorship of the Company by giving his resignation letter to the company. In this situation also, the company is required to intimate the ROC about his resignation in Form DIR-12 within 30 days from the date of the resolution.
What is the time limit to update the details of Director changes?
Once the director has filed his resignation or consent letter to act as a director with the company, it is the responsibility of the company to intimate the changes to MCA within 30 days of such changes in the e-form DIR-12 required by MCA with necessary attachments within 30 days from the director change.
A Director of a Company must be above the age of 21 and must have a Director Identification Number. The person can be an Indian National or a Foreign National. The Director of a Company has to be a natural person.
What is the Age limit of becoming a director? There
The articles may impose a share qualification, but this is unusual in modern companies' articles. If a company has such a provision in its articles, the shares must be acquired within two months of appointment
Executive Director or whole-time Director is someone in full-time employment of the company.
Only an Individual (living person) can be appointed as a Director in a Company. A body corporate or business entity cannot be appointed as a Director in a Company. A company can have a maximum of fifteen Directors – it can be increased further by passing a special resolution.Minimum Number of Director in Company are as follows: - Private Limited Company – Minimum two Directors in case of Private Limited Company - Limited Company – Minimum three Directors in case of Limited Company. - One Person Company – Minimum one Director in case of One Person Company.
A person who is an undischarged insolvent or has at any time been adjudged insolvent. ,A person who suspends or has at any time suspended, payment to his creditors or makes or has made a composition with them.,A person who is or has been convicted by a court of an offence involving moral turpitude. The first Part of Schedule XIII gives the list of statutes and provides that any person convicted for violating them and sentenced to imprisonment or fine up to Rs 1000 shall not be appointed without the approval of the Central Government.
Every listed company shall appoint at least one woman director within one year from the commencement of the second proviso to Section 149(1) of the Act.
An independent director means a director other than a managing director or a whole-time director or a nominee director who does not have any material or pecuniary relationship with the company/ directors.