{"id":6757,"date":"2021-12-17T04:31:09","date_gmt":"2021-12-17T04:31:09","guid":{"rendered":"https:\/\/msassociates.pro\/articles\/?p=6757"},"modified":"2022-09-08T09:05:36","modified_gmt":"2022-09-08T09:05:36","slug":"appointment-and-resignation-of-directors","status":"publish","type":"post","link":"https:\/\/www.msassociates.pro\/articles\/appointment-and-resignation-of-directors\/","title":{"rendered":"Appointment and resignation of directors"},"content":{"rendered":"<p style=\"font-weight:600;\" dir=\"ltr\">Have you ever wondered how the members of the board of directors get appointed or how do they leave their positions? Well, wonder no more, in this article we will tell you all about appointment and resignation of directors.<\/p>\n<h3>APPOINTMENT OF DIRECTORS<\/h3>\n<p>As per Section 149(1), every company shall have a Board\u00a0of Directors consisting of\u00a0Individuals\u00a0as Director. (It is clear to understand from this line that only an\u00a0individual can be director of company. Some persons have doubt that other than\u00a0individual can be director or not). According to this section\u00a0ONLY AN INDIVIDUAL\u00a0can be director of company. {The Board\u00a0shall consist of individuals not of other persons like firms, LLP, companies,\u00a0gods or other legal persons.}<\/p>\n<p style=\"font-weight:600;\" dir=\"ltr\">Minimum No. of Directors as\u00a0per Section 149(1)(a):<\/p>\n<ul>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">Three in case of Public Company.<\/p>\n<\/li>\n<\/ul>\n<ul>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">Two in case of Private Company.<\/p>\n<\/li>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">One in case of One Person Company.<\/p>\n<\/li>\n<\/ul>\n<p style=\"font-weight:600;\"dir=\"ltr\">Procedure:<\/p>\n<ul>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">First Check\u00a0whether Articles (AOA) of the Company contain power\/authorization to\u00a0appoint Director read with Section 161(1) of the Companies Act,\u00a02013. {If there is no provisions in Articles of the Company, then Alter the\u00a0Articles of the company to have enabling clause for appointment of Director.<\/p>\n<\/li>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">Second Check whether such person have DIN No. or Not. If\u00a0such person doesn\u2019t have DIN No. then Apply for DIN.<\/p>\n<\/li>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">Third following documents\u00a0are required from Director to appoint him as Director.<\/p>\n<\/li>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">Consent in writing to act as Director in\u00a0Form DIR-2\u00a0pursuant to Rule-8 of\u00a0Companies (Appointment &amp; Qualification of Director) Rules, 2014<\/p>\n<\/li>\n<\/ul>\n<ul>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">Intimation by Director in form\u00a0DIR-8\u00a0in terms of Companies\u00a0(Appointment &amp; Qualification of Directors) Rules, 2014, to the effect that\u00a0he\/ she is not disqualified u\/s 164(2) of Companies Act, 2014.<\/p>\n<\/li>\n<\/ul>\n<ul>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">Advisable to take disclosure of\u00a0Interest in Form MBP-1 pursuant to Section 184(1) read with Rule 9(1) of\u00a0Companies (Meetings of Board and its Powers) Rules, 2014. {One thing should be\u00a0noted MBP-1 should not be dated earlier than date of his\/her appointment as\u00a0Director}.<\/p>\n<\/li>\n<\/ul>\n<p style=\"font-weight:600;\" dir=\"ltr\">However,\u00a0if there is nothing to disclose on the part of new Director, even then also\u00a0require to take form MBP-1 from Director. [NIL disclosure is also a disclosure\u00a0under \u00a0section 184(1)].<\/p>\n<p style=\"font-weight:600;\" dir=\"ltr\">Fourth after receiving\u00a0all the documents from the director:<\/p>\n<ul>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">Call the Board\u00a0Meeting.<\/p>\n<\/li>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">Pass Board Resolution for\u00a0appointment of Additional Director and Extra-Ordinary Resolution for appointment of director other than Additional Director.<\/p>\n<\/li>\n<\/ul>\n<ul>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">Issue Letter of\u00a0Appointment.<\/p>\n<\/li>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">File e-form\u00a0DIR-12\u00a0[Along with DIR-2 + Letter of Appointment+ DIR-8+\u00a0Interest in \u00a0\u00a0\u00a0other entities.]<\/p>\n<\/li>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">Make necessary entries in the Register of\u00a0Directors along with their Shareholding, if any, maintained u\/s 170 of Companies\u00a0Act, 2013.<\/p>\n<\/li>\n<\/ul>\n<h3>RESIGNATION OF DIRECTORS<\/h3>\n<p style=\"font-weight:600;\" dir=\"ltr\">1. The Director intending to resign shall send\u00a0notice in writing\u00a0to the Company. The resignation of a director shall take effect from:<\/p>\n<ul>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">The date on which the Notice is received by the company or<\/p>\n<\/li>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">The Date, If Any, Specified by The Director in the notice,\u00a0whichever is later.<\/p>\n<\/li>\n<\/ul>\n<p style=\"font-weight:600;\" dir=\"ltr\">2. The director who has resigned shall be liable even after his resignation for the offences which occurred during his tenure.<\/p>\n<p style=\"font-weight:600;\" dir=\"ltr\">3. The law has caste duty upon the Director\u00a0Resigning, to\u00a0File Form DIR- 11\u00a0(Company shall file form DIR 12) and<\/p>\n<ul>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\"dir=\"ltr\">Mention therein the Reason for Resigning.<\/p>\n<\/li>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">Enclose the copy of Notice sent to the Company.<\/p>\n<\/li>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">Enclose Proof Of Dispatch.<\/p>\n<\/li>\n<li dir=\"ltr\">\n<p style=\"font-weight:600;\" dir=\"ltr\">File the said form within 30 days of resignation along with the prescribed filing fees.<\/p>\n<\/li>\n<\/ul>\n<p style=\"font-weight:600;\" dir=\"ltr\">There is\u00a0warning note\u00a0at the end of the form which states as follows:<\/p>\n<p dir=\"ltr\"><strong style=\"color:#2C72CD;\">Note:\u00a0Attention is also drawn to provisions of Section 448 and 449 which provide for punishment for false statement and punishment for false evidence respectively. These sections 448 and 449 relate to punishment for committing fraud or giving false evidence and these are\u00a0non-compoundable offences.<\/strong><\/p>\n<p style=\"font-weight:600;\" dir=\"ltr\">We hope you found this article to be helpful. For further queries, please visit\u00a0<a style=\"font-weight:600;\"href=\"https:\/\/msassociates.pro\/articles\/contact.php\">us<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Have you ever wondered how the members of the board of directors get appointed or how do they leave their positions? Well, wonder no more, in this article we will tell you all about appointment and resignation of directors. APPOINTMENT OF DIRECTORS As per Section 149(1), every company shall have a Board\u00a0of Directors consisting of\u00a0Individuals\u00a0as [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-6757","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Appointment and resignation of directors<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.msassociates.pro\/articles\/appointment-and-resignation-of-directors\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Appointment and resignation of directors\" \/>\n<meta property=\"og:description\" content=\"Have you ever wondered how the members of the board of directors get appointed or how do they leave their positions? 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