Appointment of a New Director in Private Limited Company
Appointment of a New Director in Private Limited Company
Directors are key person in whom
Shareholders of company trusts for their money invested, here in this article
we will discuss about how a company can have new Director on its Board legally
in India :
Required documents and Forms:
A. Obtain Consent of Proposed
Director:
Proposed Director Should give his
consent to act as Director in the Company as per Form DIR-2 , this is very
important document and company must obtain form DIR-2 form before proposing him
Director of the Company.
B. Digital Signature
of Proposed:
If proposed Director does not have Digital
Signature , he must obtain Digital Signature from Certifying Authority in
India.
C. Obtain Director
Identification Number (DIN):
If the
proposed Director does not have DIN, Director is required to pass Board
Resolution for proposing him to be Appointed as Director of the Company , the
company should apply for DIN no of the proposed person. The Resolution is
required to be attached with Form DIR 3. DIN is only allotted once for lifetime
of Director.
D. Hold Extra
Ordinary General Meeting of the Company:
Now on the meeting date and
time , hold the meeting and Pass the Necessary Resolution for Appointment of
Director as Company.
E. Issue Letter of Appointment.
Now issue letter of appointment
to the Director of the Company mentioning terms and conditions of appointment
and salary to be payable to the Director
F. File form DIR-12 to ROC:
Once all the above steps are completed the Company
should file Form DIR-12 to ROC within 30 days form the date of appointment of
Director , It is always advisable to File the Form DIR-12 within next day of
appointment, so as to avoid late filing and Additional Fee.
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