Addition of the New Director

In any Private limited company Directors can be added with some legal procedures required by the ROC and MCA with the rules and regulations of the companies act,2013.

Who is a Director?

As we all know that even though a company is a legal entity in the eyes of law still it is not a natural person and can not take decisions and all the functions by itself. It has no physical existence. So, it needs a human body to work and act on behalf of the company. This human body is named as directors.
They are collectively known as “Board of directors”. Directors take the decision regarding the management of the company collectively in the meeting known as Board Meeting.
As per the Companies Act,2013 “director” means a director appointed to the Board of the company.

Reasons For Adding or Changing Directors in any Company

  • If the existing directors resign in the company, we need to add a new director in place of the existing one to run the company smoothly.
  • Due to age, health, or disqualification under Section 164 of the Companies Act.
  • Retirement by rotation under Section 152 (in public companies).
  • Replacement is needed to ensure smooth functioning of the company
  • If the Board or shareholders wants to add any new director they can add
  • To bring in new expertise, experience, or business contacts.
  • Appoint professionals or industry experts as independent or additional directors.

Types of Directors that can be add:

Documents Required for Director Appointment

The appointment of a director necessitates the submission of specific documents:

The director’s Permanent Account Number card is mandatory

Acceptable identification includes Voter ID, Driving License, Aadhaar Card, and similar documents.
Documentation confirming the director’s residence, like utility bills or rental agreements.
A current passport-sized photograph of the prospective director.
Required for the electronic signing of documents.