DIRECTOR OF A COMPANY
The Directors are the persons who are elected by the shareholders of the Company. They direct, conduct, manage and supervise the affairs of the Company. A Director is legally responsible for running the company. They also have other legal duties such as to file the accounts on time, safeguarding the company’s assets and not to carry on trading if the company cannot pay its debts.
Every Director shall be appointed at the general meeting of the company, unless otherwise expressly provided in this act. If Directors are found guilty on wrongdoing they can be fined, imprisoned, made liable to pay the company’s debts themselves or disqualified from being a company director for a number of years.
MINIMUM AND MAXIMUM NUMBER OF DIRECTORS OF A COMPANY
The law requires that every company must have at least 3 directors in case of Public limited company, minimum 2 directors in case of Private limited company and a minimum one director in case of One person company. A company can have a maximum 15 directors. The company could appoint more directors by passing special resolution in its general meeting.
QUALIFICATION FOR APPOINTMENT OF DIRECTORS
- The person must have completed the age of 18 or above.
- Nationality can be that of Indian or otherwise.
- The person should have its own digital signature certificate through which director identification number (DIN) shall be obtained.
- A person shall not be eligible for appointment as a director if he is disqualified under Companies Act, 2013.
DISQUALIFICATION OF A DIRECTOR OF A COMPANY
- If he is of an unsound mind and is declared by the court.
- He is insolvent.
- He is in the process of declaring insolvency and his application is pending.
- He has been convicted by a court of any offence and imprisoned during the last six months.
APPLY FOR DIRECTOR IDENTIFICATION NUMBER(DIN)
All the existing and intended directors have to obtain DIN within prescribed time-frame as notified.
FORMS FOR DIN APPLICATION AND MODIFICATION THEREOF:
- SPICe form: Application for appointment of DINs to the proposed first directors in respect of new companies shall be made in SPICe form only.
- DIR-3 form: Any person intending to become a director in an existing company shall have to make an application in eform DIR-3 for allotment of DIN.
- DIR-6 form: Any changes in the particulars of the directors shall be filled in form DIR-6.
CONCLUSION: The Directors are the core of the company and they are the main secret behind the successful company. The company management should in the hands of responsible people who can use their power in the proper direction as the greater power comes with greatest responsibility. If you have any doubt regarding this, you can contact company suggestion.