A company Director is appointed to a company to manage the day-to-day business activities and finances and to ensure all statutory filing obligations are met. Directors must act lawfully and honestly and make decisions for the benefit of the company and its members.
Step 1 – Eligibility of Director- Each director is appointed or added or named by the Investors, who agree to incorporate another new director to the Board of Directors. The qualification criteria of appointing a new director are set out in the company’s Articles of Association and the individual to be selected must satisfy each paradigm before their arrangement.
Step 2 – Consent of Director- The person to be appointed as the new director gives consent to their appointment in the form of a written document, as per the form DIR-2.
Step 3 – Digital Signature of Director- The Director must have a Digital Signature for the purposes of filing important documents with the ROC. If the Director already has a Digital Signature, there is no need for a new one, however, if the Director does not have a Digital Signature, it must be obtained from a Certifying Authority before proceeding with their appointment process.
Step 4 – Director Identification Number (DIN)- It is mandatory for a Director to have a DIN, i.e. Director Identification Number, a unique number allotted to each Director in India. If the Director does not already have a DIN, they need to obtain it by filing a form with the MCA and the Board must pass a resolution to appoint the Director.
Step 5 – Extra Ordinary General Meeting- The company is required to hold an Extra Ordinary General Meeting to pass a resolution to appoint the new Director. A notice of the meeting must be issued to all the shareholders of the company, informing them about the time, place and date of the meeting. Once the resolution is passed, the person can be appointed as a Director.
Step 6 – Letter of Appointment- After the resolution is passed, the company can issue the Letter of Appointment to its new Director, which includes the provisions relating to their appointment, salary, responsibilities, etc.
Step 7 – Application to ROC- Once the LOA is issued to the Director, the ROC must be informed about this appointment within 30 days. This is done by filing the prescribed form DIR12 with the ROC.
- PAN Card .
- ID Proof – Voters ID / Passport / Driving License / Aadhaar card (front & back);
- Latest bank statement with transactions or telephone bill / mobile bill with name and
- address clearly mentioned;
- Passport size photograph;
- DSC token of the proposed director;
- Other information as set forth in the word document attached.
Process will be completed within 7 Business working days if the documents are properly submitted.