Add a Director in Private Limited Company
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Adding a Director - Overview
It is possible to add a director to the company at any time. While the articles of incorporation should have provisions allowing it to do so, the Articles of Association and Companies Act provisions instruct how and who can be appointed as a new director. Adding new directors to the company needs a bunch of procedures.
Why Add/Change Directors to company
Following are the reasons why people choose to add or change directors
- To get new talent on board
As your company grows you will need to bring new talent on board to meet the new requirements and challenges
- No dilution of ownership
Directors are mainly responsible for the day-to-day operations of a company. Appointing an additional director helps the shareholders assign more operational responsibilities without losing any control.
- Inefficiency of existing directors
The existing directors cannot meet the requirements of the work due to retirement, family problems, physical ailments or other personal reasons. In these cases, you need to add new directors.
- To meet the statutory limit
In case of sudden death or any plans of retirement from existing directors, you will need to add another director to your company.
Documents Required For Closing An LLP
Partners need to submit the following documents
Process for Adding a new Director
First we have to Check if the articles of the company supports adding an additional director. If not then modify the AoA of the company hence allowing addition of an additional company director.
The to be director must give his or her consent
The company must pass a board resolution
Get the DSC (digital signature certificate) and DIN (director identification number) for the new director.
Collect the basic documents and information required.
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