The company is a legal person that needs a natural person for managing, directing, controlling, and overseeing the affairs of the company. It is a primary requirement for a Private Limited Company to appoint minimum 2 directors. In a private Limited company, the boards of directors can appoint or elect one person or more than one person as a director who implements and determines the policies of the company.
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A director is someone elected by the company shareholders to manage the company affairs as per the Memorandum of Association MOA and Articles of Association AOA. The person wishing to be a director must have a Digital Signature Certificate DSC and Director Identification Number DIN. Any person above 21 years can become a director of a company. The AOA of a company should contain provisions for adding a director. The Companies Act, 2013 prescribes the procedure that a company must follow to add a new director. A private company should have a minimum of two directors at all times. However, the company can have a maximum of fifteen directors. As the company grows and expands, it will need to bring new talent to its board of directors to help it meet the additional requirements and challenges. It is natural to add or change the top-level management as the company grows. A company may want to change its directors by appointing new directors to the board due to the inefficiency of the existing directors. Sometimes, the current directors may not be able to meet the work requirements due to family problems, physical ailments, retirement or other personal reasons. In such cases also, the company needs to add new directors. A Company has the authority to remove a Director by passing an Ordinary Resolution, given the Director was not appointed by the Central Government or the Tribunal.
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