Directors are appointed by the shareholders of a company for the management of a company. As per the companies law 1956, a Private Limited Company is required to have a minimum two directors and Limited company is required to have a minimum three directors. On the other hand, limited Liability Partnership has designated partners and Limited Liability Partnership Act, 2008 requires each LLP to have a minimum two Designated Partners.
Changing a company director means that either removing a director from the boards of the directors of the company or appointing a new director in the company as an additional director. Though such a changing may be made for some reasons diverse, this should be accordance with AOA of the company, provisions of the companies act 2013, and any service agreement available. Hence, registration or appointment of a director should be supported by proper legal process and documentation, and punctual intimation to the concerned ROC. Are you willing to change your company’s director or adding a new director? If yes, you have come to the right place. In this article, we are going to tell you what the procedure is for changing director in company.
Sections 169 of the companies act, 2013 talk about removal of a director by members:
Section 169 (1):
Section 169 (2)
Section 169 (3)
Section 169 (4)
Section 169 (5): Vacancy created by the removal of a director can be filled by appointment of another director at the same meeting.
Section 169 (6): Director so appointed in place of removal of a director can hold the office till the date up –to which removed director would have held office if he had not been removed.
Section 169 (7):
Section 169 (8): Director can be removed under any other provisions of the act.
Highlights of Changing Directors:
The company should obtain all KYC documents along with necessary educational qualification documents required as per terms job, it is important to note that there is no minimum qualification required to hold position of Director in the company in India.
Hold extra ordinary general meeting of the company: The directors of the company are appointed in the general meeting, the company should issue the notice to all shareholders of the company for holding extra ordinary general meeting. Once the notice of EGM is issued to the shareholders. Now on the meeting date and time, hold the meeting and passed the resolution for appointment of new director in the company. If board fails to call EGM then shareholders shall call the EGM after the expiry of 45 days but within 90 days, from the date of receipt of the special notice and requisition by the Boards of Directors.
I hope now you understand the procedure of changing director. Still, in the event if you face any problem while changing a director of the company, you can get in touch with us. Unilex Business Consultant professionals will help you regarding the procedure of changing directorAs one of the leading advisory consultant, we will help you regarding changing the director of the company. Feel free to contact us anytime through email address or phone number. We would happy to help you.
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