Process of Change in Director
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You can get expert advice on process of change in directors.
Document submission and verification
Once you submit the documents required, our experts will do the paperwork.
We will file the documents with the MCA.
Completion of work
Once your directors are added or changed, we will send you the documents back.
What is meant by Change in directors?
A board of directors is a representative of the Company as well as of the shareholders. Thedirectors are effectively the driving force of the company, appointed by the shareholders to manage its day-to-day affairs.
The authority to approve the resignation of the director lies with the Board of Directors whereas the appointment must be made through consent of shareholders.
Change of directors
The change in the directorship of a company includes both addition/removal of directors and can be either voluntarily or through demand. The demand arises in following cases.
- There is an expert requirement in the board
- Due to Resignation
- Death of an existing director
- If an existing director doesn’t attend three board meetings in a row.
Reasons for Change in Directors
Employ new talent
With growing business, each department requires new inputs for increasing efficiency of the business. So with the employment of new talent the company’s benefits can be increased with specialization & focused efforts.
• Incompetence to work by existing directors
The Company needs to make sure that its work does not get affected irrespective of resignation or death of director. It needs to be prepared for any discontinuations by director or any appointment of new director.
Allocate operational responsibility without dilution of ownership
The shareholders can assign the operational responsibilities to directors keeping strategic control in hand with the appointment of an additional director. In this case, a director does not require subscribing to share capital & so the ownership and voting rights of shareholders does not dilute with a new person on Board.
Falling of directors under statutory limit
Minimum number of directors should be 2 and 3 for Private and Public company respectively & the number of directors shall not reduce below this limit. The company must appoint a new director(s) within 6 months if the number reduces below this limit.
Documents Required for Change of Director
Self- attested copy of PAN card of proposed Director
Address Proof of proposed Director (Aadhar Card/ Voter ID/ Passport/ Driving License)
Passport size photograph of Proposed Director
DSC of the continuing director and director to be removed
Forms to be filed for Change in Director
|DIR-12||For both Appointment and removal of a director within 30 days from the date of Appointment as well as date of resignation.|
|DIR-11||For giving notice of resignation of director to ROC by self within a period of 30 days from the date of resignation.|
|DIR-2||For consent to act as a director of the proposed company which is required to be filed by the person who wishes to become a director.|
|DIR-8||It is the intimation provided by the director to the company that he is not disqualified as per section 164 of Companies Act, 2013.|
Frequently asked questions
What are requirement for appointment of director?
Valid legal Documents, DIN Number, Digital Signature is required at the time of appointment of Director.
Do I need to visit any Government office for Change director of Company?
No, there is no need to visit any office for legal procedure. Share document with us over mail and we will get it done.
Can a Director voluntarily resign from Company?
Yes, Director must serve a notice to company about resignation and the legal filing at MCA need to be carried by Resigning Director.
Do I need to apply for another DIN, if I have already procured one?
No, it is not required to obtain another DIN. It is permanently allotted and can be used for subsequent appointment in any company/LLP.
What should I do if number of director in my company is less than 2/3?
If the total number of directors is less than the number prescribed, the company shall appoint a director(s) in the company to fulfil the requirement within 6 months from removal/resignation/death of the any director.
Whether director needs to subscribe shares for his appointment?
There is no requirement to subscribe the shares by the director. However, if the Articles of the company prescribe for subscription, it must be fulfilled as a condition for his appointment.