Director Change in A Private Limited Company

Directors are crucial individuals that oversee the organization. They are the company’s management, in charge of operations and administration. The resignation of director or appointment of a director resulted in a change in the company’s director. The shareholders of the corporation vote to appoint or remove directors. A minimum of two directors are necessary for a private limited business and three directors for a public limited Company.

The Corporations Act has no specific educational requirements for appointing or removing directors. The article suggests a method for changing the company’s director. Just one individual may be appointed as a director of a corporation, and the firm must have at least one resident director. We can assist with the appropriate legal paperwork to add or remove a director from the firm.

The primary prerequisite for adding a Director is a digital signature. After the digital signature is completed, a formal file may be made with the MCA in order for the proposed director to be issued a Director Identity Number. With a DIN number, a proposed director may be appointed to the firm with the approval of the shareholders.

When removing a director from a corporation, it is crucial to know that the firm must have at least two directors.

Director Characteristics

Resident Director Company Must have one director who spent at least 182 days in India in the previous calendar year.

Resident Director Company Must have one director who spent at least 182 days in India in the previous calendar year.

Independent Producer

An independent director is a substitute director for a Managing Director, who is also known as a Full Time Director or Nomination Director.

Director of Operations

Section 161(1) of the New Act allows a corporation to nominate any individual as an Additional Director. Appointed person will be Additional Director Shadow Director someone who is not appointed to the Board but whose orders the Board is used to acting on, is responsible as a Director of the firm, unless offering advise in professional capacity.

Women Director

Section 149 (1) (a) specifies the categories in which at least one woman must serve as a director on the Board.


Any changes to a company’s board of directors must be done in conformity with the rules of the Companies Act, 2013. A change might be the addition/appointment of a new director or the departure of an existing director. A Corporation has the authority to remove or convene a meeting for the purpose of changing the directors of a private limited company by passing an Ordinary Resolution (OR), provided that the director of the private limited company or any other form of entity was not appointed by the Central Government or the Tribunal.

Appointment of Directors in the Event of a Change in the Board of Directors of a Private Company:

According to Section 160 of the Companies Act of 2013, the following process must be followed when appointing a person as a director in a business during a change of director:

  • Obtaining a DIN: If the individual to be appointed as a director does not already have a Director Identification Number (DIN), apply for one by submitting a DIN application form. DIR-3.
  • Conducting a Board meeting and passing the relevant resolution: A board meeting for passing the resolution for the appointment of a director shall have been convened with at least 7 days’ notice to all shareholders and directors of the firm. The day, date, and location of the EGM OR AGM will be chosen during such a board meeting.
  • Extra-Ordinary General Meeting or Annual General Meeting: The notification for the general meeting must be given to all stakeholders at least 21 days before the meeting date. In such a general meeting, the appointment of a director is noted by passing the relevant resolution.
  • Letter of Appointment to the Director is issued.
  • Fill out E-form DIR-12 within 30 days of your consultation.
  • File E-Form MGT-14 (together with CTC+Consent+Letter of Appointment) (for disclosure of interest of director in MBP-1)

The individual will now serve as an Additional Director of the company until the firm’s AGM. The director must be regularised at the next AGM by adopting an ordinary resolution and changing the designation from additional director to director.


Consent to act as Director in Form DIR-2 as per Companies (Appointment & Qualification of Directors) Rules, 2014

Intimation by Director in Form DIR-8 as per Companies (Appointment & Qualification of Directors) Rules, 2014 that he/she is not disqualified to act as director under section 164(2) of the Companies Act, 2013.

Form MBP-1 Declaration of Interest


Section 168 of the Companies Act, 2013, requires the following process for the resignation of a director from a company:

The Director who intends to quit must provide the firm written notice of his intention to resign. (The date of resignation must be the date of providing resignation letter or the date designated by director, whichever is later.) The Director must submit E-form DIR-11 within 30 days after resignation together with required filing fees, stating the reason for the resignation.

Following receipt of the Director’s resignation letter, the Company must conduct a Board Meeting to take notice of the resignation and enact the relevant resolution in the event of a change in director.

Filing of Eform DIR-12 within 30 days of the Company’s effective date of Resignation of Director.

Whatever the reason for the change in directors of a private company, whether it is Appointment or Resignation, there is always an obligation to submit an extracted copy of the resolution passed in meeting of the Board of Directors or General meeting of shareholders, along with the E-Form DIR-12 to the concerned ROC officials within thirty days of the date of the board meeting or effect of the resolution in case of shareholder meeting to the concerned ROC officials.

In addition, the Statutory Registers of the Company must be amended in order to successfully execute the change of director in a private limited company in accordance with the provisions of the Companies Act, 2013. and 77388 77316 are the email addresses and phone numbers.

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