Add a Director

Overview of Adding a Director procedure:

If you plan to change or add a director to your company, you must know that it is possible at any time. The articles of incorporation should provide for the appointment of directors, but the provisions of the Articles of Association and Companies Act determine how and who can be appointed.

Why do companies go for adding Directors?

These are the general reasons why companies choose to add or change their directors:-

To add new talent to the team

As changes arrive in the company’s path and it evolves, it will require some new talents and skill sets to tackle the challenges along these new paths. The top-level management and the talents of its members play a crucial role in the success.

No dilution of ownership

A company’s directors are responsible for its day-to-day operations. The shareholders can assign more operational responsibilities without losing strategic control by adding or appointing an additional director.

Existing directors fail to meet the goals.

It can be that existing directors, due to various reasons like early retirement, family problems, physical ailments etc., have decided to leave or will not be able to work. Maybe simply they are not qualified for that work. In such cases, a company needs to add new directors.

To meet the statutory limit.

A fixed minimum and a maximum number of directories are allowed in the company. It can be that to meet the limit; a company appoints directors. There can be a shortage of directors in cases of sudden death or plans of retirement of existing directors; companies will have to fill that position.

Process of Adding a Director

The process of adding a director is more complicated; well, you don’t have to worry, as you can take the assistance of experts from Eazy Startups.

Step 1: A company can add a director only if the AOA of the company allows it. In case nothing is mentioned or it is not allowed, you can modify the AOA by following the proper procedure to add a provision that allows the addition of directors.

Step 2: The candidate for director must give their consent by filling and signing Form DIR – 2 to act as the director.

Step 3: The board must agree and allow the appointment of the candidate for director

Step 4: Get the new director’s DSC (digital signature certificate) and DIN (director identification number)

Step 5: Get these forms filled – Form DIR-2, Form DIR-12 and Form DIR-8 done at ROC and collect all the necessary documents.

The experts can handle the formalities ahead at Eazy Startups.

Required Documents

• PAN card: mandatory for an Indian applicant
• Identification proof (PAN card)
• Passport size photograph
• Digital signature certificate of the proposed director
• Passport of the applicant
• Proof of residence (electricity bill, rental agreement, Aadhar Card, voter ID, passport, driving licence)

Frequently Asked Questions