The term “Board of Directors” refers to a group of individuals who are elected by a company’s shareholders to manage the company’s affairs. Because a company is an artificial legal person created by law, it can only act through the agency of natural persons.

According to the Companies Act of 2013, a “Director” is someone who is appointed to the company’s board of directors.

A company can only act through human beings, and it is primarily through the Directors that the company operates. As a result, the management of a company is entrusted to a group of people known as the “Board of Directors.”

Someone who administers, controls, or directs something, especially a member of a commercial company; or a person who supervises, controls, or manages; or a person who is elected by the shareholders of a company to direct the company’s policies; or a person who is appointed or elected according to law, or who are authorized to manage and direct the affairs of a company.

WHO CAN BE A COMPANY’S DIRECTOR?

A Director Identification Number is required for a person to become a director at the time of private limited company registration (DIN Number). Any person over the age of 18 can obtain a DIN Number by applying to for DIN.

DIN is a one-of-a-kind eight-digit Director Identification Number. The Central Government assigns this number to anyone who wishes to become or is already a director of a company, and obtaining a DIN is a simple process. The DIN number is valid for life. The details of the directors are kept in the database using the Direct Identification Number (DIN).

Appointment of a director in an Indian company is governed by the Companies Act 2013 and the rules made thereunder, and is subject to the provisions of the company’s articles of association, as well as the SEBI regulations in the case of a listed company.

In a company, there are primarily two types of directors who are appointed.

Executive Directors (managing Director , whole – Time Director etc)

Non Executive Directors  (Independent Director , nominee Director)

AGE LIMIT FOR BEING A COMPANY’S DIRECTOR

Directorships have an age limit. Non-executive directors have an age limit. The Companies Act does not specify an age limit for becoming a non-executive director of a company. A minor cannot be a director or a minor who has not reached the age of majority cannot be a director in the company because a minor is not legally competent to enter into a contract. The relationship between a director and a company is contractual in nature.

MANAGING DIRECTOR, WHOLE TIME DIRECTOR AND MANAGER AGE LIMIT

Refer to section 196 (3) of the Companies Act and Part One of Schedule V. A person shall not be eligible for appointment as a managing director, whole-time director, or manager if he has not reached the age of 21; however, if you have reached the age of 70, a company may appoint a person as a managing director, whole-time director, or manager by obtaining member/ shareholder approval through a special resolution.

INDEPENDENT DIRECTOR OF A COMPANY MUST BE AT LEAST 18 YEARS OLD.

As per Regulation 16(1)(b)(vii) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the age of an independent director to be appointed in the case of a listed entity shall not be less than 21 years of age.

RESIDENT OF INDIA

As provided in part one of schedule five of the Companies Act, a person who is a resident of India is eligible for appointment as the managing director, whole-time director, or manager.

A resident of India is defined as someone who has lived in India for a continuous period of at least 12 months prior to the date of his appointment.

NATIONALITY OF A COMPANY’S DIRECTOR

There are no nationality-specific restrictions in the Companies Act for the appointment of directors; however, the articles of association of a company may include such instructions; such cases are extremely rare.

CAN ONE COMPANY BE A DIRECTOR OF ANOTHER?

According to Section 149(1) of the Companies Act, only individuals may be appointed to the board of directors of a company; therefore, no company body, corporate body, association, or firm may be appointed to the board of directors of another company.

PERSON DISQUALIFIED TO BE A COMPANY’S DIRECTOR

A disqualified person is not eligible for appointment as a director of a company. The criteria for disqualification of a director for appointment or reappointment are set out in Section 164 of the Companies Act.

HOW CAN SOMEONE FIND THE DETAILS OF A COMPANY’S DIRECTORS IN INDIA?

The directors’ details of all companies registered in India, including foreign companies with a place of business in India and registered under the law, are made available on the official website of the Ministry of Corporate Affairs (MCA).

CONCLUSION

In India, a Private Limited Company is one of the most common types of business entity. The Directors of such companies play an important role during the company incorporation and post-incorporation processes. This article goes over everything you need to know about being a director of a private limited company.

By clarifying falsehoods and integrating the firms, Udyog Buddy has aided a number of clients. We are a collection of professionals who will help you register your company for a modest fee. We can assist you in determining the optimal business structure for your company.

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