Appointment of Director
Generally the director are appointed at AGM of the company and can also be appointed in between two AGM to fill the vacancy caused in the office of the director.
Different type of director appointment
1. First director
2. Additional director
3. Alternate director
4. Nominee director
5. Director appointed in casual vacancy
6. Director appointed by proportional representation
7. Additional director
8. Alternate director
9. Nominee director
10. Director appointed in casual vacancy
11. Director appointed by proportional representation
First director: are those who are appoint at the time of incorporation of company. They are appointed by subscribing the MOA and AOA or By Shareholder in General Meeting.
Additional director means director appoint due to heavy work load or inefficient quorum and their tenure end on the date of AGM or Last day of AGM should have been held.
Alternate director means director appointed in place of existing director who are out of India for period of 3 month or more and their period comes to end on the date of return of original Director in India.
Nominee director means Director appointed by Financial Institution or Government this happen in case of loan given by Financial Institution or any inquiry held by government.
Director appointed in casual vacancy means Director appointed in place of director whose place becomes vacant due to resignation or death. The tenure of such director remaining period of director in whose place they were appointed.
Director appointed by proportional representation this concept was bring to give the value to minority shareholder every public company shall must appoint 2/3 of its total director by proportional representation.
Documents Required for Appointment of Director
5. DIR 2 consent
6. Board Resolution
7. Appointment Letter
8. Mail id
9. Mobile number
Benefit of Appointment of Director
1. Reduce Work Load on Director
2. Proper Management of Company
3. Variety of knowledge and expertise of each director
4. Proper company compliance