Appointment of Director to Your Private Limited Company

A company is an artificial judicial person managed and run by natural persons known as directors. A company’s management is entrusted to its board of directors. Situations may arise where a company may be required to appoint more directors to its board from time to time based on the requirements of the business or company shareholders. A board of directors is a collective body of individual directors of a company.

However, the appointment of the directors must be according to the Companies Act, 2013 for it to be legally valid. This article covers how a director is appointed in a company, reasons for adding or changing directors and the documents required for director appointment.

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Who can be a company director?

Any individual above 21 years can be appointed as a director. However, an artificial person, such as a corporation, company, firm, association or entity, cannot be appointed as a director.

What are the eligibility criteria to be a company director?

The following are the eligibility criteria to become a director:

The individual should be above 21 years
The individual should not have an unsound mind
The individual should not be an undischarged bankrupt or adjudged an insolvent
The individual should not be sentenced by a court and convicted for more than six months

Adding a Director – Overview

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.