Change of Directors in a Company Online


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Know about director's change in a company

Directors are the said to be brain of the company. They are the managerial personnel who control and administer the company’s operations. The rotation of directors takes place in one or the other way – either by appointment of new director or resignation of existing. Aim to carry out change of directors is always to ensure optimum combination of experts on board for interest of company. 

The authority to approve the resignation of the director lies with the members of BoD whereas the appointment must be made through consent of shareholders. Whether it is an appointment, removal or resignation, the change does not take effect until the intimation is made to Ministry of corporate affairs.

Why changing directors is required?

Hire new talent on board

With the growth of business, strategies and alliances are developed, that requires inputs of each department are required for effective planning. Also, with an addition of the new product line or department, an expert to lead the team can be hired in a managerial position being director of the company. This benefits the company with specialization and focused efforts.

Assign operational responsibility without dilution ownership

Directors are responsible for day-to-day operations. With the appointment of an additional director, the shareholders can assign the operational responsibilities to directors keeping strategic control in hand. Here, a director does not require subscribing to share capital, hence, the ownership and voting rights of shareholders does not dilute with a new person on Board.

Inability to work by existing directors

The existing directors may be unable to serve the company after a certain period due to retirement or other personal reasons. Whether it is a resignation by the director or his death, the company needs to make sure that its work is unaffected. It needs to process for both discontinuations by director and appointment of a new director if any.

Number of directors fall under statutory limit

The Companies Act has prescribed the minimum number of directors in any company, which is 2 and 3 for Private and Public company respectively. At any time during the company’s existence, the number of directors shall not reduce below from the limit. The company must appoint a new director(s) within 6 months if the number reduces below 2/3.

Documents required for Addition or Removal of director

Passport size photograph of the director to be appointed
PAN Card

Self-attested PAN card of the director to be appointed

Proof of Residence

Aadhar Card/ Voter ID/ Passport/ Driving License director to be appointed

Digital Signature Certificate

DSC of the continuing director and director to be removed

Change directors in 3 Easy Steps

1. Answer Quick Questions

  • Pick a Package that best fits your requirements

  • Fill in our questionnaires that take less than 10 minutes

  • Provide basic details & documents required for registration

  • Make payment through secured payment gateways

2. Experts are Here to Help

  • Assigned Relationship Manager

  • Preparation of necessary documents

  • Preparation and filing of Application

  • Updated MCA master data with modified details

3. Director is Added or Removed

  • All it takes is 5 – 7 working days*

Process for addition or removal of directors

Day 1

  • Consultancy for requirement of change of directors

  • Collection of basic Information & documents

  • Application for DSC (for director to be appointed)

Day 2 - 4

  • Drafting necessary resolutions and documents

  • Provide documents required provided after signature

Day 5 - 7

  • Preparation of online application

  • Filing of application for changing directors

  • Sharing master data from MCA with updated information