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Frequently Asked Qustion

What are the pre-requisites to add a director in company?
Do I need to apply for another DIN, if I have already procured one?
Whether director needs to subscribe shares for his appointment?
How to transfer the shares while change of director in the company?

Appointment of Directors

As per the Memorandum of Association and Articles of Association of the company – to mange the affairs of a company a company dictor is elected by the share holders. Since a company is an artificial judicial person created by law, it can only act through the agency of natural persons.

To be director a person must obtain a digital signature certificate (DSC) and director identification number (DIN). Any person above 18yrs DIN can be obtained. The recidency or nationality is not matter for DIN application. To director of company in India- Indina, NRI, Foreigner can obtain DIN.

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Types of Director in a Company

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Executive Director

Executive Director is a Director, who is in full-time employment of the company. Hence, executive directors are deeply involved with the management of the company and managing affairs of the company.

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Additional Director

Additional Director is someone appointed by the Board of Directors between two annual general meetings subject to the provisions of the Articles of Association of a company. Additional Directors can hold office only upto the date of next annual general meeting of the Company.

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Ordinary Director

Ordinary Director means a simple Director who attends the Board Meetings of a company and participates in the matters put before the Board of Directors. These Directors are neither whole-time Directors or Managing Directors.

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Alternate Director

Alternate Director is someone appointed by the Board of Directors in a general meeting to act for a Director called the original director during his/her absence for a period of not less than three months. Generally, alternate Director are appointed for a person who is a Non-Resident Indian or Foreign Collaborators of a company.

 

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