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Directors are the elected people who manage the whole work on behalf of the company and are responsible for companies corporate policy but under section 2(34), A Director is a  person who is appointed but not designed as a director will not be considered under this act. The definition given in the section 2(13) of the companies act states that a director is a person who performs the duties of a director will be consider to be a director no matter by which name he is been called.

Number of Directors Appointed

  • In case of a public company the minimum number of directors which can be appointed are 3 and in case of private companies the minimum number of directors which can be appointed are 2 and if we talk about a one person company the minimum directors which can be appointed is 1.
  • Maximum of 15 directors can be appointed by passing a special resolution and requirement of special resolution is not needed in licensed company and in government company under section 8

Qualifications of Directors

 To be appointed as a director a person need to be atleast 18years of age and would have not commit any of the crime in the previous days . Till now the companies act does not prescribed any academic or professional qualifications for directors.

Disqualified Directors

  • A person which is not allotted with DIN.
  • A person who has been imprisoned for more than 5years.
  • A person with a silly mind.
  • If a disqualifying order has been passed to a person by a court.
  • If a person is in a process of declaring insolvent and if his application is pending.
  • A person who has not paid any call on shares and a period of 6months has passed.

Types of Directors

  1. Residential Directors: These are those directors who have been in India and stayed for not less than 182days.
  2. Independent Directors: These are non-executive directors who didn’t have any relationship with the company and these directors help the company to improve corporate credibility and enhance the government standards.
  3. Small Shareholders Directors: These are those directors in which small shareholders hold shares of nominal value of not more than 20,000.
  4. Women Director: A company, whether it is a private company or a public company, would be required to appoint at least one woman as a director in a company. A women director can only hold the position of a director till the next Annual General Meeting.
  5. Additional Director: Under this, A company may appoint any person as an additional director other than a person who has failed to get appointed in the general meeting. Additional director can occupy his post until the next annual general meeting.
  6. Nominee Directors: These are the directors who have been appointed by financial institutions , banks, shareholders to form part of the board of directors.

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