Change In Directors

Directors are generally appointed as per the applicable provisions of the Companies Act 2013, by the shareholders of the company to ensure that the day-to-day operations of the company are executed in an efficient manner.

The change in the directorship of a company is possible at any time and when needed. The change can be either voluntary or through demand. The demand arises in case there is a requirement for an expert on the board or due to the resignation or death of an existing director.

Noteworthy here are the facts that as per the Indian Companies Act of 2013, a private limited company and an LLP company must have at least two directors always. On the other hand, a public limited company must have a minimum of three directors at all times.

• In case of resignation from the Board of Directors, the resigning director has to give a notice to the BoD, and the company is required to conduct a Board meeting and then a general meeting to inform about the said resignation and approve the same through taking a resolution by a simple majority.
• To become a Director of a Company, a person must be at least 18 years old and possess Director Identification Number.
• In either of the cases of resignation or appointment, the related company is required to submit a copy of the resolution taken in a Board meeting or General Meeting of shareholders, along with the Form DIR-12 to the concerned ROC, within 30 days from the effect of the resolution
• To add a director or Designated Partner, Digital Signature must first be obtained for the proposed Director. Once, Digital Signature is obtained, the proposed Director can be added to the Company with the consent of the shareholders. To remove a Director from a Company or LLP, it is important to ensure the Company or an LLP would have the minimum required number of Directors or Designated partners after the removal of the Director. If so, then the resignation letter along with the required form must be filed to affect the resignation of the Director.