Appointment of Director

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Hiral Vakil

PLC
Start & Run Business

A director is an individual who directs, controls, or manages the affairs of the company. Every company shall have a Board of Directors consisting of individuals as directors. Generally, the Appointment of the director is done by shareholders in general meeting.

Directors are now formally included within the definition of “Key Managerial Personnel” or “KMP” under Section 2(51) of the New Act.

What documents are required for Appointment of a Director?

A person can hold maximum 20 number of directorships including any alternate directorship. Number of directorships in public companies/private companies that are either holding/subsidiary company of public company shall be limited to 10.

What are the different types of directors in a company?

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FAQs

How are Board of Directors of company appointed?

In public company or private company subsidiary of public company two-thirds of total number of directors are appointed by shareholders and remaining one-third is appointed according to manner described in Articles.
In private company which is not subsidiary of public company the manner of appointment of any or all directors is as per the Articles.in case the Articles are silent the directors are appointed by shareholders.

Can a director be appointed by Board of a company?

The directors of the company are appointed by shareholders in general meeting. The Board of the company if authorised by AoA can appoint a director under the following:
1. Appointment of additional director
2. Appointment of nominee director
3. Appointment of alternate director
4. Appointment of director for filling a casual vacancy

Can an additional director be appointed in a board meeting?

If authorized by Articles of Association, Board can appoint any person as Additional Director other than a person who fails to get appointed as Director in a general meeting. Additional Director can be appointed by passing a resolution in Board meeting or by circulation.

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