When it’s time to change directors in your company, Vyapar Saathi is here to simplify the process for you. We understand the importance of complying with the Companies Act, 2013, and ensure that all procedures are followed meticulously.

100
+
Registrations
0
+
Professionals

Pan India Presence

Talk to an Expert

1.Fill Form

Simply fill the above form to get startd.

2. Call to discuss

Our expert will connect with you & complete legalities.

3. Get Documents

We will file Director documents with ROC

Overview

Understanding the Role of Directors in a Company

A company, often seen as an artificial entity, operates differently from a living person. While a human being has the natural ability to make decisions and act, a company relies on individuals to function. Directors are these vital individuals who guide and control a company’s operations.

A director plays a crucial role in shaping the success of an organization. Appointed under the Companies Act, 2013, directors are responsible for the day-to-day management of the company. Their decisions not only impact the company’s profitability and success but also contribute to its reputation and goodwill.

Changing Directors: A Key Corporate Move

Change is a constant in business, and this includes changes in the company’s leadership. Whether due to strategic shifts, retirement, or other reasons, altering the composition of the board of directors is a significant event for any company. Such changes must be formally registered with the Registrar of Companies (ROC) as per legal requirements.

Section 160 of the Companies Act of 2013 – Changing Directors

Under Section 160 and Rule 13 of the Companies (Appointment & Qualification of Directors) Rules, 2014, there’s a clear process for adding someone as a director in a company, apart from a director who is stepping down.

How to Appoint a New Director?

Get a DIN

First, the person who’s going to be a director needs a Director Identification Number (DIN). This is done by filling out form DIR-3, as mentioned in the Companies Act of 2013.

Board Meeting

Holding Board meetings and pass the necessary resolution

General Meeting Notification

Then, you need to tell all the stakeholders about a general meeting at least 21 days before it happens. At this meeting, everyone will officially note the new director’s appointment by passing the necessary resolution.

Official Letter

Next, the new director gets an official letter of appointment.

Filing Form DIR-12

Within 30 days of this appointment, you need to file Form DIR-12 with the Registrar of Companies. This form should include a copy of the board resolution, the director’s consent to the appointment, and the appointment letter.

Who Can Be a Director?

• Must be mentally sound.
• Only an individual can be a director, as per Section 149.
• Should be financially sound (solvent).
• He must not have been convicted of any offence by any court.

Section 168 of the Companies Act of 2013 – Resignation of Directors

Section 168 of the Companies Act of 2013 details the process for a director’s resignation, a procedure not specified in the original Act of 1956.

Steps for a Director’s Resignation

Notifying the Company

The director wanting to resign must inform the company by giving notice and a letter explaining why they want to leave.

Effective Date of Resignation

The resignation takes effect from the date the company receives this notice.

Director’s Duty to Inform ROC

The resigning director must file form DIR-11 with the Registrar of Companies (ROC) to officially inform them about their resignation.

Company’s Responsibility

After getting the resignation notice, the company must acknowledge it and pass a resolution to formally approve the resignation.

Company’s Filing Requirement

The company is then required to file form DIR-12 with the ROC within 30 days from the effective date of the resignation.

Section 169 of the Companies Act of 2013 – Director Removal

Section 169 of the Indian Companies Act, 2013, outlines the process for removing a director. It grants shareholders the authority to remove a director through a resolution during a general meeting.

Steps for Removing a Director:

Resolution by Shareholders

Shareholders can propose the removal of a director by passing an ordinary resolution at a general meeting.

Special Notice Required

Shareholders must give special notice about their intention to remove a director.

Notifying Members

Once the company receives this notice, it must inform all members at least 7 days before the meeting date.

Informing the Director

Informing the Director: The company should also inform the director who is being considered for removal. This director must be given a chance to be heard.

Filing the Resolution

After the special resolution is passed, the company must file it in form MGT-14 with the Registrar of Companies (ROC) within 30 days.

Why Choose Vyapar Saathi for Managing Change in Directors for Your Company?

When it comes to managing changes in the directors of your company, Vyapar Saathi stands out as the ideal partner for several compelling reasons:

1. Expert Guidance: At Vyapar Saathi, we have a dedicated team of experts who specialize in corporate laws and the Companies Act of 2013. They are well-equipped to guide you through the intricate process of changing directors, ensuring that all legal requirements are met efficiently.

2. Seamless Process Management: We understand that changing directors can be a complex procedure involving various formalities. Our team streamlines this process, handling all the necessary paperwork, filings, and compliance issues, ensuring a hassle-free experience for you.

3. Compliance and Accuracy: We stay updated with the latest regulations and amendments in corporate laws to ensure that your company remains compliant with all legal requirements. Our focus on accuracy and detail ensures that all documentation and filings are completed correctly and on time.

4. Timely Execution: We respect the importance of time in business operations. Our commitment to prompt service ensures that the change in directors is executed within the required time frame, avoiding any legal complications or delays.

5. Transparent and Cost-Effective Services: Vyapar Saathi believes in transparent pricing without any hidden costs. We offer our services at competitive rates, ensuring that you receive value for money without compromising on the quality of service.

6. Personalized Attention: We understand that each company’s needs are unique. Our services are tailored to meet your specific requirements, providing personalized attention and solutions suited to your business needs.

7. End-to-End Support: From the initial consultation to the final submission of documents, we offer comprehensive support throughout the process of changing directors. Our team is always available to address your queries and provide assistance whenever required.

Choose Vyapar Saathi for a smooth, efficient, and compliant change in directors for your company. Let us handle the legalities while you focus on steering your business towards success.

Talk to an Expert