The director of a company is like a driver of a bus who drives carefully each and every step in the road. Hence, the presence of a director is very essential. Director has the fundamental role of operating different dealings of the company and takes important resolutions after consulting creditors and shareholders. The Companies Act, 2013 claims that every company shall have a minimum number of 3 directors in the case of a public company, two directors in the case of a private company, and one director in the case of a One Person Company. Accordingly, directors are the executors of the company's money and property, and also act as agents in the transaction which they enter into on behalf of the company. According to the section (161)Appointment and section (169)removal of the director in a company must be duly justified and approved by the shareholders of the company or Board of directors of the company, as the case may be.
Here Filing Bazaar will guide you with removal and addition of directors in a company .
A new Director can be added to the Board of Director by passing an ordinary resolution in an Annual General Meeting or an Extraordinary General Meeting. Ordinary resolutions can be passed by a simple majority.
It is compulsory for any Individual who is to be appointed as a Director for the first time to obtain Director Identification Number (DIN) allotted by the ministry of Corporate affairs after filing necessary documents.
An individual to qualify as a Director must be at least 18 years old and must give consent to serve as a director. A foreign National can also be appointed as a Director of an Indian Company.
•A Company can remove a Director by passing an ordinary resolution in an Annual General Meeting or an Extraordinary General Meeting. Ordinary resolutions can be passed by a simple majority.
•A casual vacancy caused by the removal of a director from a Private Limited Company having only two directors must be filled by the appointment of new director within 6 months from the date of resignation of previous director.
•Every company shall keep at its registered office a register of its directors and key managerial personnel and shall make necessary entries in accordance with the provisions of Companies Act, 2013.
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