As we all know directors are appointed by the shareholders of the company for the management of the company. A private limited company or LLP is required to have a minimum of two directors and a public limited company is required to have a minimum of 3 directors according to the Indian Companies Act of 2013. The appointment and removal of a director or the designated partners may be done for various reasons such as due to death, due to incompetence and mutual consent of the owners of the company. Change in director means either removing a director or appointing a new director as an additional director. Sometimes an organization has to bring some changes in their working which are very difficult to do. The changes that are introduced in the business must be done gradually as no organization would accept bombarding the organization with the changes because it always affects the employee's work.
Board of directors before taking any decision should keep in mind whether the particular change that is being made in the organization would be good or bad for the employees working in an organization as it affects the employees' morale and confidence. And also they should keep in mind whether the changes they are doing are important or not and how the business environment of the organization would be affected.
However, we must note that one of the major changes is the change in the directors of the company. This is one of the major changes because the directors are the ones who manage the organization and represents the vision, mission, and values for which the company stands for. As per the companies act, 2013 the maximum permissible directors in a company are 15. This should be kept in mind while making a change in the board of directors. Also, the director who is to be removed should be given a proper reason from the board of directors. In the case of a resigning director, a notice must be given to the board of directors in the written form for acceptance through a meeting or AGM. A director who is resigning is also required to submit a copy of his resignation to the relevant ROC in form DIR-11 and that too within 30 days.
To add a director or to remove a director Digital signature (DSC) is obtained and DIN (Director Identification Number) is allotted to them which is compulsory to be the director of the company.
Passport size photograph of the director/directors to be appointed
Self-attested PAN card to be appointed
Proof of residence, Aadhar card/ driving license/Voter ID of the director to be appointed.
DSC (Digital signature certificate) of the director to be removed and the continuing director.