The Nuances of Changing or Adding a Director

A Company has the authority to add and remove the Director by passing an ordinary Board resolution. Given the director was not appointed by the Central Government or the Tribunal. A Board meeting will be called within seven days and send notice to all directors the change in directorship of a company is possible any time as and when needed. That change includes appointing a new director and removal of a director both.

We at Accounting4you can help in both the matters of adding and removing the directors/partners from the company.

Procedure for Appointment to a Director

Appointment of Public Limited Company directors can be done by passing a ordinary resolution in the general meeting of Board of directors. Also shareholders have the sole authority to appoint the new directors in general meeting.

Procedure for removal to a director

The company’s shareholders can eliminate a director in a General Meeting by giving him special notice under Section 115 of the Companies Act, 2013. The removing director is given a fair opportunity to be heard before the company proceeds with the filling and other requisite steps.

Important step for appointment/ removal to a Director

We have to File Form DIR-12 within ’30 days’ from the date of general meeting with following documents:

  • Special notice of the shareholders proposes to remove the director.
  • Notice of general meeting with explanatory statement.
  • Copy of ordinary resolution passed at general meeting.
  • Notice sent to concerned directors

It is important for the individual who is getting appointed as the director to have a digital signature. If he does not have the same we are going to help in the process. And arrange for the same from the source of the certifying authority. He will get the DIN or the Director Identification Number. This is something highly important for having an Additional Director. If the company has the intention to Change director they will ask for all the KYC documents along with the qualification details. We need to notify you that there is no minimum educational qualification required for holding the position of director.

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