Add/Remove Director
Add or remove directors in your company with ROC compliance.
Expert support for director appointment and resignation filings.
Chat On WhatsappAdd/Remove Director
What is Add/Remove Director ?
Directors are often considered the brain of the company, serving as the key managerial personnel responsible for overseeing and guiding its operations. Changes in the board of directors can occur through the appointment of new directors or the resignation of existing ones. The primary objective of such changes is to maintain an optimal mix of expertise on the board, in the best interest of the company. While the resignation of a director is typically approved by the Board of Directors, the appointment of a new director requires the consent of the shareholders. Regardless of whether it involves an appointment, resignation, or removal, the change is not legally effective until it is duly communicated to the Ministry of Corporate Affairs.
Documents Required
Annual Filings by the Companies in India
Hire new talent on board
With the growth of business, strategies and alliances are developed, that requires inputs of each department are required for effective planning. Also, with an addition of the new product line or department, an expert to lead the team can be hired in a managerial position being director of the company. This benefits the company with specialization and focused efforts.
operational responsibility without dilution ownership
Directors are responsible for day-to-day operations. With the appointment of an additional director, the shareholders can assign the operational responsibilities to directors keeping strategic control in hand. Here, a director does not require subscribing to share capital, hence, the ownership and voting rights of shareholders does not dilute with a new person on Board.
Inability to work by existing directors
The existing directors may be unable to serve the company after a certain period due to retirement or other personal reasons. Whether it is a resignation by the director or his death, the company needs to make sure that its work is unaffected. It needs to process for both discontinuations by director and appointment of a new director if any.
Number of directors fall under statutory limit
The Companies Act has prescribed the minimum number of directors in any company, which is 2 and 3 for Private and Public company respectively. At any time during the company’s existence, the number of directors shall not reduce below from the limit. The company must appoint a new director(s) within 6 months if the number reduces below 2/3.
FAQ's
1. What should I know before changing directors in Private Limited Company?
While carrying change in the board of directors, the company must obtain consent from its Board and members, as required by passing a resolution. Further, the care must be taken that the number of directors does not fall below the statutory limit after removal or resignation.
2. What should I do if number of directors in company is less 2/3?
If the total number of directors is less than the number prescribed, the company shall appoint a director(s) in the company to fulfill the requirement within 6 months from removal/resignation/death of the concerned director.
3. Whether Director needs to subscribe shares for appointment?
There is no requirement to subscribe the shares by the director. However, if the Articles (AoA) of the company prescribe for any such subscription, it must be fulfilled as a condition for his appointment.
4. What should to do to remover directors from a company?
In order to remove a director from a Company, the directors shall conduct a meeting of members for their consent after serving special notice in this regard. The exiting director must be given an opportunity to represent his grounds.