Director as per companies Act, 2013 defines the director appointed to the board of the company. Directors of the company has the own roles and responsibility in the company. Each directors has own significant role to manage the affairs of the company and day to day company management. The limit has been specified of the director’s appointment in the law. As per law there is minimum requirement that every company whether One Person Company, Private Company, Public Company has to appoint the directors in the company.
For every One-person company the limit of director appointment is 1.
For every Private Limited Company, the limit of director appointment is 2.
For every Public Limited company, the limit of director appointment is 3.
Further by-passing Special Resolution, the company can appoint maximum 15 directors. The director appointed in the company one director should be Indian resident for more than 182 days in any previous calendar year.
RESPONSIBILITIES AND DUTIES
The responsibilities and duties of the directors in the company have been specified are as under:
Directors have to determine the company’s strategies, policies, objectives as per the company guidelines.
To monitor the growth of the company as per the policies defines in the company.
Board of directors has the duties to appoint any senior management in the company.
To act in good faith.
Act in the best interest of the company, for the employees, members, and for the protection of environment.
Not to gain any undue profit for himself or the relatives, partners.
To check that the company run as per the article of the company and within the power of the company.
To protect their interest and evade undue liability, it is advisable that directors adopt a safeguard measures:
Attend the meeting on regular basis.
Act honestly for the company.
For day to day compliances, have a knowledgeable secretarial team and establish boards for the company audit.
Give professional advice, establish audit committees, and engage external agencies.
TYPES OF DIRECTORS
Following has been classified as the directors of the company:
Executive director: Executive director is the full-time director of the company and have the biggest roles and duties for their companies and the organization. Employees of the organization and the company expect from the executive director efficient and effective working and very careful in all the company’s dealing.
Non-Executive Directors: Non-Executive Directors are the non-working directors of the company and are not involved in the day to day salaried of the organization. Non-executive directors only have the position in the company of planning or policy-making process. Decision and solution for the best interest of the organization are in the hands of the executive directors.
Managing directors: Managing directors have the significant capability to make conclusions, achieve and direct other members and shareholders of the company. A Public Company or a subsidiary of a Public Company must appoint the managing director having the share capital more than 5 crores rupees.
Independent directors: Independent directors do not have any direct relation with the organization. Independent director only gives expert advice to the board of directors if and when required and the experience of the independent directors is the assets of the company. Public companies having the paid-up capital and the turnover of Rs. 100 crores or more and the outstanding loans 50 crores or more must appoint two independent directors.
Qualifications of independent director:
Independent director should have knowledge, skill and experience;
Independent director must be a person of honesty;
Independent director should not be a shareholder of the company;
Does not have any relation with the promoter or with the company.
Residential director: Should be resident of India, A director residing in India for at least 182 days is a residential director.
Small Shareholder Directors: In a listed company only the one can appoint as a single director. Notice has been issued to at least 1000 shareholders or 1/10th of the shareholders whichever is less, to approve the same.
Women directors: Only those companies whose shares listed on the stock exchange or the paid-up capital of 100 crore or more and the turnover 300 crore or more must appoint the women director.
Additional Directors: Additional director has been appointed till the next annual general meeting and take the position in the next annual general meeting.
Alternate director: Alternate director is appointed when the director not in a position or absent for more than 3 months. Alternate director act as a director for the particular period or for the temporary period.
DIRECTOR MASTER DATA
Director master data is available on Ministry of corporate affairs, where we can check the directors DIN (Directors Identification Number), or the number of companies in which the director has been appointed as the directors of the company. Secondly, Directors contact details also can check through inspection of the company in MCA through LOGIN MCA portal.
Director plays a very vital role in the company to manage the affairs and the day to day administrative of the company and the role of the director in every company is very crucial and challengeable because the backbone of the company depends upon the directors of the company.
Through inspection we can also check whether company has filed to the Registrar of company a form DIR 6 where we can check the details of the director for the reference and the director want to changes any details on the MCA portal same can be amended by filing DIR 6 form. For every director it is mandatory to file DIR 3 KYC for the DIN activation every year and to check the director’s detail same can be check from the DIR 3 KYC form which will be submitted to the department for the Activation of DIN.
Every director shares the different powers and position in the organization. The directors have the main role to maintain and share the true and fair and the transparent position in the company and also take the decision that will help to increase the efficiency of the company.
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