Add/Removal of Director

With the constant changes in the employees, addition or removal of directors of the company is also quite common. But unlike the change of an employee at junior level, the change of Directors is quite a legal and tedious job to carry out. Legally, addition or removal of any Directors due to any reason is resolved at the Annual General Meeting(AGM). However, any such changes have no effect on business, as it continues to exist indefinitely and remains independent.

Documents required for Add/Removal of Directors

Digital Signature

Of the newly appointed Directors

DIN/DPIN

Only in case of addition of Directors

Add/Removal of Director Cost

We at Compregi believe in complete transparency in the complete registration process of your company. Below mentioned cost structure includes all the necessary government fees required at multiple stages of registration.

DIR - 3 KYC

1499/-
  • Free Consultancy
  • Free Search Check
  • Preview before Filing

ADD/REMOVAL OF DIRECTOR

1499/-
  • Free Consultancy
  • Free Search Check
  • Preview before Filing
  • 100% Peace of Mind

AUDITOR APPOINTMENT

1499/-
  • Free Consultancy
  • Free Search Check
  • Preview before Filing

Why To Add Directors

Adding a director to a company can create numerous advantages.

New skills, knowledge and techniques for sustainable expansion and novelty creation.

Augmented judgmental skills and diverse know-hows with a well-rounded approach.

Better corporate governance and transparency are among the key factors that help make strategic decisions.

Credibility level of a company desired by investors will definitely be higher.

What Is Procedure To Add The Directors

The procedure for adding a new director in a private limited company involves the following steps:

01
Board Meeting
Organize a board meeting to provide details and obtain approval with regard to appointment of the new manager.
02
Shareholders' Approval
Customers who are frequently offered promotions have more chances to buy products and services.
03
Consent and Declaration
Have the director propose his or her name in Form DIR-2 and submit a guarantee in Form DIR-8.
04
Director Identification Number (DIN)
Ensure the proposed director holds a valid DIN or apply for one if asked.
02
Filing with ROC
Once the director has been named, File Form DIR-12 with the Registrar of Companies (ROC) within 30 days.

What Are The Criteria To Add The Directors

To add a director to a company, the following criteria must be met:

At least, one should be eighteen years old.

Be having DIN is a valid one.

The Act of Companies 2013 will not disqualify us as a kind of company.

Be eligible in line general applicable to the AOA.

Obtain permission from the company and accordingly fill up the director’s form in Form DIR-2.

Acts For Adding Directors

The appointment of directors is governed by the following sections of the Companies Act, 2013

01
Section 152
Placement of directors.
02
Section 161
Hiring in addition to ordinary, alternate, and representative directors.
03
Section 149
Board of Directors to be Company's mandate

How To Remove Directors

Removal of a director in a private limited company can be done through the following means:

Resignation: Director may quit the work by handing in resignation letter that he/she has signed by himself/herself.

Removal by Shareholders: The shareholders have the power to expel one of the directors through passing an ordinary resolution at a general meeting.

Disqualification: He/she can be removed if he/she is disqualified as per the criteria specified in Section 164 of the Companies Act, 2013.

What Is The Procedure To Remove The Directors

The procedure for removing a director in a private limited company involves the following steps:

Special Notice

 And a notice for the company must be made known 14 days before the general meeting.

Board Meeting

 Call a board meeting, where all representatives will discuss the action and notations of the removal.

General Meeting

Conduct a general meeting which will pass an ordinary resolution that will result in the removal of the director.

Filing with ROC

Submit a completed form DIR-12 ROC within 30 days of the removal.

What Are The Criteria To Remove The Directors

The removal of a director is subject to the following criteria:

The director can be given a chance to speak his/her mind.

According to the company's Articles of Association, an execution must be carried out.

Notices and prerequisites must be adhered to in accordance with the prescribed measures.

Acts For Removing Directors

The removal of directors is governed by the following sections of the Companies Act, 2013:

01
Section 169
The discretionary powers of directors.
02
Section 115
The proposal covers the hiring of further management employees.
03
Section 163
Enables the pro rata model for the recruitment of directors.

CompRegi team is well aware of the role of the directors in a company’s board, and they appreciate how critical it is to have the right ones. With our timely guidance, the team of experts can help you through the process of adding or removing a director in your private limited company, and thus notify you of all the legal requirements to be fulfilled. Through a so many services, the business owner has room for running their business and we will do the rest, including paper works and filing.

FAQs

Can a director be removed without his/her approval?

A director may be terminated based on a resolution passed by the shareholders in a general meeting where the decision does not require the consent of directors.

Does a private limited company have the limit on number of directors?

A private limited company should have at least two directors, but the company’s Articles of Association can specify the number.

Could a director be reelected after being expelled?

Yes, a director who has been removed can be again appointed by following the appointment process unless he or she is excluded from the Act in the sense of sections 164-165 of the Companies Act, 2013.

How long does it take to select or remove a director?

The procedure generally is expected to imply a time span of between 15 and 30 days, providing that everything is in line with the law and all the documents are filed in time with the ROC.

Can the director be removed without holding a general meeting?

As a matter of fact, the only way a director may be removed is by passing an ordinary resolution at an annual general meeting, except he voluntarily resigns or becomes disqualified under the law.

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