Add New Director in Private Limited Company

Director is the person who is appointed to the Board of a Company. In a Private Limited
Company, Directors play an important role in its operation; Directors make day-to-day
decisions for business operations; Directors are key people in whom company
shareholders put their faith for their money; and in this article, we will discuss how a
company can legally add a new Director to its Board of Directors in India:

PROCESS

Step 1: Obtain the consent of the proposed director

The proposed director should consent to act as a director in a private limited company.
Step 2: Digital signature of the proposed director
If the proposed director lacks digital signatures, they will need to obtain one from the
Certification Authority in India.
Step 3: Get Director Identification Number (DIN)
If the proposed Director does not have a DIN, he should notify the company, then the
Board’s proposal is required to pass to appoint him as a Director. The company will
apply for the DIN.
Step 4: Issuance of the general meeting notice
There will be an issuance to hold the company’s extraordinary general meeting to all the
stakeholders if the director is appointed at the general meeting.
Step 5: Extraordinary General Meeting
In the extraordinary general meeting, approve the resolution necessary for the
Director's appointment as Company.
Step 6: Issue Appointment Letter
There will be terms and conditions of the appointment in the appointment letter o

REASON FOR APPOINTING NEW DIRECTOR

1. To hire new talent on board.
2. If the existing directors are unable to work properly due to any reason.
3. To assign operational responsibility without dilution of ownership
4. There shall be at least two directors in a private limited company. If the number
of directors does not fall within the legal limit, add.

DOCUMENT REQUIRED
1. Passport size photograph 
2. Self-attested PAN card 
3. Proof of Residence 
4. Aadhar Card / Voter ID / Passport / Driving License 
5. Digital Signature Certificate
FAQs
1. What is the Minimum Number of Directors?
Ans. There has be at least 2 directors for a private limited company.
2. Is there any eligibility criteria for appointing a New Director?
Ans. Yes.
3. Can there be two DIN?
Ans. No, One DIN is allotted to one director.
4. List the no. of forms that need to be filled while appointing a new director.
Ans. FORM DIR-1, FORM DIR-2, FORM DIR-8, FORM MBP-1, FORM MGT-14
5. Can a Director resign himself from the company?
Ans. Yes.
6. Can minors become a director of a company?
Ans. No. A person above the age of 18 can only become a director.
7. Under which section directors are appointed?
Ans. Section 149(1) of the companies act.
8. Who appoints the first Director of the company?
Ans. Shareholders