How to Start a Appointment of Additional Director

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What is Appointment of Additional Director?

Director of a company is a person chosen by the shareholders for managing and looking after the affairs of the company according to the Memorandum of Association and Articles of Association of the company. As a company is an artificial legal person formed by law, it can only act through the group of natural persons. Thus, only living persons can be Directors of a company and the management of a company is delegated to the Board of Directors. Appointment of Directors may be required for a company from time to time as per the requirements of the shareholders of the business.

To appoint a director, the person proposing to become a Director must obtain or have a digital signature certificate (DSC) and director identification number (DIN) which is a mandatory requirement. Any person who is an Indian National or he is a Non-Resident Indian and any Foreign Nationals are allowed to obtain DIN and they can be appointed as Director of a company in India.

Types of Director in a Company to be appointed

  • Managing Director.
  • Executive Director.
  • Ordinary Director.
  • Additional Director.
  • Alternate Director.

Document necessary and time were taken

Draft of Board Resolution and carry out necessary requirement relating the same and file the board resolution in relevant form with ROC.

What is the procedure for adding a director?

By passing an ordinary resolution at AGM or EGM as the case may be, a new Director can be added to the Board of Director. Ordinary resolutions can be passed by a simple majority. Once a resolution is passed, the Company must file the Resolution along with the necessary documents in the relevant forms and to the Ministry of Corporate Affairs to appoint a Director.

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