HOW TO ADD ADDITIONAL DIRECTORS TO AN EXISTING COMPANY

As we already know that only an individual can become a director in order to become one there are procedural requirements which has to be done according to the companies’ act 2013. A person delegated as an additional director can involve their post until when the date of the following Annual General Meeting. Without an Annual General Meeting, their term of arrangement will close on the date on which the yearly broad gathering ought to have been held. In spite of the fact that delegated on a transitory premise, an additional director is vested with similar powers of a director. Also, they are liable to all commitments and confinements of a director. They are likewise qualified for look for a permanent director at the Annual General Meeting. The additional director must use his/her powers to the greatest advantage of the organisation and the investors.

The number of directors and additional directors taken together shouldn't surpass the number determined in the Articles of Association. For example, if the Articles of Association of an organization allows the appointment of 11 directors’ altogether, and the organization right now houses 5 full-time directors, the Board of Directors may choose 6 additional directors. Further the Board isn't approved to name any individual as an additional director whose resolution for appointment is dismissed by the investors in a general gathering. Let’s look what are the documents required for adding directors to the existing company,

1)     Photograph.

2)     PAN card.

3)     Proof of residence.

4)     Digital signature residence.

Now let’s see what are the steps involved in adding additional directors in the companies act 2013,

1)     Check whether articles of the Company contain Check whether articles of the Company contain power/authorization to select Additional Director read with Section 161(1) of the Companies Act, 2013. Gather DIN number of the proposed chief u/s 153 read with from DIR-3 and DIR-4.

2)     Collect DIN number of the proposed director u/s 153 read with from DIR-3 and DIR-4.

3)     Collect Consent in writing to act as Director in form DIR-2 pursuant to Rule-8 of Companies (Appointment & Qualification of Directors) Rules, 2014.  

4)     Intimation in Form DIR-8 pursuant to Rule-14 in terms of Companies (Appointment & Qualification of Directors) Rules, 2014, to the effect that he/she is not disqualified u/s 164(2) of Companies Act, 2013.

5)     Disclosure of Interest in Form MBP.1 pursuant to section 184(1) read with rule 9(1) of Companies (Meetings of Board and its Powers) Rules, 2014

6)     Hold a board meeting for Board Resolution for appointment of Additional Director u/s 161 of Companies Act, 2013 and   Board Resolution for taking note of Disclosure of Interest in Form MBP.1 u/s 184 of Companies Act, 2013.

7)     File form DIR.12 with ROC as return of appointment of Additional Director within 30 days of passing board resolution for appointment.  

8)     File form MGT.14 with ROC for filing resolution passed for taking note of Disclosure of Interest in Form MBP.1 u/s 184 of Companies Act, 2013.  

9)     Make necessary entries in the Register of Directors along with their Shareholding, if any, maintained u/s 170 of Companies Act, 2013.
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