Add Director
Addition of New Directors
Adding new directors to a company involves several steps to ensure compliance and operational continuity:
- Board Resolution: Hold a board meeting to approve the appointment and issue a resolution.
- Director Identification Number (DIN): Obtain DIN for new directors if not already assigned.
- Form DIR-12: File Form DIR-12 with the Registrar of Companies (RoC) within 30 days of appointment, along with necessary documents.
- Update Records: Update company records, including statutory registers and board resolutions.
Who Is a Director in a Company?
A director in a company is an individual elected or appointed to manage the affairs of the company and make decisions on its behalf. Directors have fiduciary duties to act in the best interests of the company and its shareholders. They participate in strategic planning, policy formulation, and oversee the company’s operations, finances, and compliance with legal and regulatory requirements. Directors can be executive (involved in day-to-day operations) or non-executive (providing independent oversight). Their roles and responsibilities are defined by the Companies Act and the company’s articles of association, ensuring accountability, transparency, and effective governance.
Types of Directors of a Company
There are several types of directors that can serve on the board of a company, each with specific roles and responsibilities:
Executive Directors: Involved in the day-to-day management and operations of the company, often holding key operational roles like CEO, CFO, etc.
Non-Executive Directors: Provide independent oversight and contribute to strategic decision-making without being involved in daily operations.
Independent Directors: Non-executive directors who are independent of the company’s management and major shareholders, bringing impartial judgment and oversight.
Managing Directors: Responsible for the overall management of the company’s operations, appointed under specific provisions of the Companies Act.
Nominee Directors: Appointed by major shareholders or financial institutions to represent their interests on the board.
Alternate Directors: Appointed by a director to act on their behalf during their absence, with limited authority.
Additional Directors: Appointed between annual general meetings to fill a casual vacancy, subject to ratification by shareholders.
Understanding the roles and types of directors helps ensure diverse expertise and effective governance within a company.
Executive Directors: Involved in the day-to-day management and operations of the company, often holding key operational roles like CEO, CFO, etc.
Non-Executive Directors: Provide independent oversight and contribute to strategic decision-making without being involved in daily operations.
Independent Directors: Non-executive directors who are independent of the company’s management and major shareholders, bringing impartial judgment and oversight.
Managing Directors: Responsible for the overall management of the company’s operations, appointed under specific provisions of the Companies Act.
Nominee Directors: Appointed by major shareholders or financial institutions to represent their interests on the board.
Alternate Directors: Appointed by a director to act on their behalf during their absence, with limited authority.
Additional Directors: Appointed between annual general meetings to fill a casual vacancy, subject to ratification by shareholders.
Understanding the roles and types of directors helps ensure diverse expertise and effective governance within a company.
Add Director FAQ's
Directors are appointed by shareholders at a general meeting or by the board of directors between meetings, subject to the company's articles of association.
The procedure typically involves obtaining a Director Identification Number (DIN), holding a board meeting to approve the appointment, filing Form DIR-12 with the Registrar of Companies (RoC), and updating company records.
Documents typically include consent to act as director, declaration of eligibility, PAN card, Aadhaar card, passport-size photograph, and address proof.
Yes, subject to the limit prescribed under the Companies Act regarding the maximum number of directorships an individual can hold.