• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Your Finance Book

Income Tax | Investing | Stock Market

  • Stocks
    • 10 reasons why share prices decline in the stock market
    • What to look for in growth investing strategy for better return
    • 10 things you must understand before buying stocks
    • Speculating Vs Investing Vs Saving
    • A beginner’s guide to understand stock’s value – Explained with examples
    • Mutual Fund Basics
  • GST
    • GST registration in India – all you need to know
    • Tax invoice in GST-A complete beginner’s guide for taxpayers
    • Input tax credit in GST – A beginners guide to claim ITC
    • What is inter-state supply of goods and/or services under GST
    • What is intra-state supply of goods and/or services under GST
  • Income tax
  • Tax Rates
  • ITR Due dates
  • About Us
  • Privacy Policy
  • Disclaimer
  • Terms of Use and Policies
  • Contact Us
Home / Finance / How to appoint a new or additional director to an existing company

How to appoint a new or additional director to an existing company

Last updated on October 27, 2014 by Editorial Staff

Share
Share on Facebook
Pin
Pin this
Share
Share this
Share
Share on LinkedIn

After a company’s incorporation, appointment of additional director is not only a crucial administrative requirement but also an important procedural requirement which has to be fulfilled as per the provisions of companies act 2013.

Please remember only an individual can be appointed as a director in a company. This means a company, association, firm or other body with artificial legal personality cannot be appointed as a director.

Section 160 has been introduced in new companies act 2013 in place of the earlier section 257 of old companies act 1956 to deal with appointment of additional directors in a private or public company.

This article will state the procedures, forms required and different time limits related to appointment of new or additional directors in an existing private or public limited company.

additional director appointment - company

Procedure to appoint additional directors in a company

Before getting into the steps that is required to follow for appointment of additional directors, we request to have a look on company’s article of association.

Article of association should allow or authorise to appoint additional directors. If not, then as a first step you need to alter the article of association by allowing or authorising to appoint additional directors.

In the second step, the director has to provide director identification number or DIN to the company. If the director does not have DIN then ask him to apply in form DIR-3 to the central government.

DIN allotment does not take much time. With the help of a chartered accountant or company secretary you can get it delivered within a day. Please read how to get director identification number or DIN

In addition to the DIN of director, the company is also required to collect following documents;

  • Form DIR 2: A consent letter to act as director in pursuant to section 152(5) and rule 8 of companies (appointment and qualification of directors) rule, 2014.
  • Form DIR 8 – Intimation in pursuant to section 164(2) and rule 14(1) of companies (appointment and qualification of directors) rule, 2014 to the effect that he or she is not disqualified to act as director and the list of companies where he or she is working as a director.

In the third step, company is required to hold a board meeting to pass board resolution for appointment of additional director and also authorise someone to file e-form on behalf of the company with ROC.

In the fourth and final step, company is required to file form DIR-12 within 30 days from the date of passing board resolution for appointment of additional directors. DIR-2 and DIR-8 has to be attached with for DIR-12.

Form MBP-1 as disclosure of director’s interest in pursuant to section 184(1) read with rule 9(1) of companies (meeting of board and its powers) rules, 2014 should also be collected from additional directors and a board resolution should be passed to get it filled in form MGT14 within 30 days from the date of passing board resolution.

Share
Share on Facebook
Pin
Pin this
Share
Share this
Share
Share on LinkedIn

Categories: Finance Tags: companies act 2013

About the Author

Editorial Staff at Yourfinancebook.com is a team of finance professionals. The team has more than a decade experience in taxation, stock market and personal finance.

Primary Sidebar

Financial Ratios

  • The 5 Best Investing Books for Beginners
  • Accounting tools you can use to choose a winning stocks
  • What are the tools and techniques used in financial statements analysis
  • Can Price to earnings – P/E ratio be used for stock investing
  • Why Price earnings to growth – PEG is used by investors
  • How Earnings per Share or EPS can help you
  • How to use debt to equity – D/E ratio
  • What is Interest coverage ratio

Don’t see a topic? Search our entire website:

Footer

Trending Now

  • What to look for in the financial statements before investing in stocks
  • How to manage fund while investing in stocks
  • A beginner’s guide to mutual fund investing
  • Why share prices move up and down in stock market
  • Price Action trading – How candlestick helps to read mass psychology

Email Newsletter

Sign up to receive email updates daily and to hear what's going on with us!

Privacy Policy

Stay In Touch With Us

  • Twitter
  • Facebook

Legal Disclaimer

The information available through this Site is provided solely for informational purposes on an “as is” basis at user’s sole risk. The information is not meant to be, and should not be construed as advice or used for investment purposes. Yourfinancebook.com does not provide tax, investment or financial services and advice. We make no guarantees … Continue Reading... about Disclaimer

Copyright © 2024 yourfinancebook.com · All Rights Reserved.