When a company appoints a director, it is one of the major steps towards ensuring that corporate governance is robust and that the company operates in accordance with Indian laws. Whether it is the addition of an executive director, a non-executive director, or an independent director, the procedure must be in accordance with the Companies Act, 2013, and should be made in the appropriate manner with the Ministry of Corporate Affairs (MCA).
This guide will explain how to appoint a director, outline the procedure involved, and provide instructions on how to do it with ease and from the comfort of your own home, using websites such as kanakkupillai.com to file online with confidence, knowing that it will be done properly.
Role of a Director in a Company
A director is charged with the role of leading the operations of the company, policy making, and ensuring compliance with the applicable laws. According to Section 149 of the Companies Act, all companies need to have a minimum number of directors, that is, two directors in the case of a private company, three directors in the case of a public company, and one director in the case of a one-person company.
There are many reasons why directors can be appointed, including expansion, restructuring, or the introduction of a domain expert. Whether it is a new appointment or a replacement of an existing director, this must be officially captured and reported to the MCA through proper online filing procedures.
Types of Directors
Moving on to the appointment process now, we should first understand the usual types of directors as stated in the Companies Act, 2013:
- Executive Director
- Non-Executive Director
- Independent Director
- Nominee Director
- Additional Director
- Alternate Director
Each of these positions is associated with different responsibilities, different qualifications, and different filing needs. Therefore, it is very important to select the appropriate category prior to the appointment.
Procedure to Add a Director – MCA Online Filing Process
There are regulatory filings, as well as internal company decisions, involved in appointing a director. So, you can do it in the following way:
1. Obtain Director Identification Number
All the suggested directors have to have a valid DIN. In case he or she does not possess one, the same may be applied by using Form DIR-3 on the MCA portal.
2. Board Resolution
The appointment must be approved by passing a resolution at a Board Meeting or Shareholders’ Meeting. This resolution must give the name, designation, and nature of the directorship.
3. Form DIR-2: Consent
The nominated director ought to provide a written confirmation to serve as a director in Form DIR-2. The company is required to file and keep this.
4. Submit file DIR-12 to MCA
After having the consent and the board resolution, the company must submit Form DIR-12 on the MCA portal within 30 days of such appointment. It is the most important online compliance necessity.
5. Digital Signature Certificate (DSC)
A practising professional (CA, CS, or CMA) has to digitally sign the DIR-12 form, and the form should be filed with a valid Digital Signature Certificate of an existing director.
To avoid late filing or errors in filing, most businesses have favored the services of experts, such as Kanakkupillai, who specialize in MCA compliance filing and director appointment filing services.
How Kanakkupillai Assists in Director Appointment Filing
Kanakkupillai is a reliable online company that provides end-to-end business compliance services, such as appointment of directors and filing with the MCA. Their group of experts assists in:
- Application of Director Identification Numbers(DINs)
- Preparation of drafting board and shareholder resolutions.
- Writing consent forms and disclosures
- Correct filling of DIR-12 on the MCA portal
- Offering post-compliance assistance
Need to appoint a director in an existing start-up or a big privately held limited company?
Kanakkupillai can help you with fast, complaint, and cost-effective solutions that suit your business model.
Conclusion
The appointment of a new director is not merely an internal company matter, but it is a legal obligation that is to be intimated to the Ministry of Corporate Affairs. The procedure, which includes the acquisition of a DIN to submitting Form DIR-12, has to be dealt with cautiously, precisely, and with legal understanding.
Businesses can ensure that they file their online appointment of directors with the MCA without any hassles or delays by utilizing professional services, such as those offered by Kanakkupillai. This allows them to be compliant with all the requirements set by the MCA without incurring penalties and concentrate more on their growth.
Are you prepared to hire a new director in your firm? Allow Kanakkupillai to assist you in filing online with MCA within no time and in a correct manner.
