Appointment and Resignation of Directors

Appointment and Resignation of Directors

Event-based compliance under the Companies Act, 2013, with the assistance of Darshan Corporate experts, is a convenient and flawless process. We help you file all the compliance reports on time and handle all the regulatory compliances.

The appointment and resignation of the director of the company are governed by the Companies Act, 2013.

The appointment of the director can be done in the following ways:

• By the shareholders in a general Meeting
• By the board of directors, if so authorized by the articles of association
• By the government, in case of govt. institution

Different classifications of Director appointed in the company

• Managerial Director: They have full power and charge for the operation of the company.
• Executive director: They monitor the day-to-day workings of the company.
• Non-executive director: Their task does not involve the day-to-day activities of the company.
• Nominee directors: These are chosen by investors or banks, not the primary directors.
• Independent directors: These are granted to ensure the sound governance of the company.

Section 149 (1) of the Companies Act, 2013 demands every public company has at least 3 directors, a private company needs two directors, and one director in One person company.

Requisite documents are required for the appointment and resignation of the directors:

• Passport-sized photographs of the director to be designated
• PAN card of the same
• Address proof
• DSC of the respective directors
• ID proof
• Contact information of the directors
• A resignation notice filed with the company
• Acknowledgment form

Resignation of the directors

• Directors can resign from his or her directorship by giving a notice in writing. The resignation of a director comes into effect from the date mentioned in the notice. The company should file a notice of resignation with the Registrar of Companies (RoC) within a month of resignation. A director's resignation and appointment resolution is passed by the board of directors of the company to appoint a new director. The resolution must be passed under the provisions of the Companies Act, 2013.

Read the following steps involved in passing a director resignation and appointment resolution:

• The directors who wish to resign must provide a written resignation notice to the board of directors.
• The board of directors must hold a meeting to consider the resignation.
• They must pass a resolution accepting the resignation.
• They must appoint a new director to fill the vacancy.