Change in Directors of a Company - Compliances
- No Hidden Charges
- Lowest Price Guarantee
- Quick and Hassle - Free Process
- Free Expert Assistance for Lifetime
Get Free Consultation
Overview on Compliances for Change in Directors in a Company
Updated on December 31, 2022 04:39:28 PM
Companies, though legal entities, require human guidance to function. That’s where directors come in, occupying crucial leadership positions. They oversee the company’s operations, making key decisions for its success.
Any changes to the board of directors must be officially reported. Companies file forms with the Registrar of Companies within 30 days of a board meeting resolving such changes.
As the Companies Act, 2013, stipulates, directors manage a company’s daily operations. They answer to both the company and its shareholders, ensuring everyone works towards the company’s goals.
Various reasons, like seeking better growth or facing director resignations, can necessitate replacing directors. The act lays out a legal process for such changes, ensuring smooth transitions.
Improvements:
Active voice: The text now uses active voice for a more engaging reading experience.
Conciseness: Unnecessary repetition is removed to streamline the information.
Focus on key points: The rewrite emphasizes essential details like reporting changes and directors’ responsibilities.
Improved flow: The text is restructured for a logical and clear flow of information.
Meaning of Director in a Company
According to the Companies Act, a director refers to an individual who is appointed or elected by the shareholders of a company to serve on its board of directors. The role of a director is crucial in the governance and management of a company, as they are responsible for making strategic decisions, overseeing the operations, and safeguarding the interests of the company and its shareholders.
The process for appointing a director in the company other than a retiring director is mentioned in Section 160 and Rule 13 of the Companies (Appointment & Qualification of Directors) Rules, 2014.
Procedure for Change in Director
Director Identification Number(DIN) is very important for every director to obtain in order to become a director in any company.
Holding a board meeting is necessary for any change in the position of a director in a company. Whether there is appointment, resignation or removal of director, a consent from the board members is mandatory.
A general meeting must be held to take consent from the majority of members regarding change in directors in the company.
According to section 152(5) of the Act read with rule 8 of the Companies (Appointment and Qualification of Directors) Rules, 2014, Form DIR-12 is required to be filed with the concerned registrar, within thirty days of the appointment of new director.
A director may resign from the company anytime by giving a notice to the company. The company must intimate to ROC within 30 days from the date of resignation in Form DIR-12.
As per section 168(1) of companies act, 2013 Form DIR-11 must be filed with ROC for the purpose of intimating about the Resigning Director.
For acceptance of resignation from the existing director.
Documents Required for Change in Directors
Passport Size Photograph
PAN Details
Proof of Identity
Proof of Residency
DIN(Director’s Identification Number)
DSC( Digital Signature Certificate)
Personal Details such as Mobile Number, email id etc.
Compliance Fees for Change in Director
The required compliance fees for change in director will depend on the number of forms filed and applications made. For change in director there will be application for resignation of director and another form filing for appointment of a director.
Qualification for appointment of a New Director
A director must be a person of sound mind, who can make decisions for the company.
As per section 149, only a person or an individual can be appointed as a director in a company and not a company or a group of people.
Director must be a solvent person, free from debts.
He must not have been convicted by any court.
Why Taxvilla
Complete Digital
Free Expert Assistance
Best Price Guarantee
4.9/5 Google Rating
Money Back Guarantee
