Since a company is recognized as a legal person in the eyes of law, which makes its existence separate from its members. Even with an individual legal status, a company cannot operate on its own, since it has no physical existence. This is where the concept of Board of Directors come in, The board of directors also known as the board is basically the functional brain of the company. The members of the Board are called as the directors who are authorized to exercise all the powers of the company except those which are to be exercised by the members of the company in general meetings.

Frequently Asked Questions

Who is a director?

The Companies act gives a simple definition of a director as Anyone who is appointed to the Board Of Directors are called as directors of such company.

What is the minimum number of directors?

One Person Company:                 1
Private Limited Company:           2
Public Limited Company:           3

What is the maximum number of directors?

A company can appoint a maximum of 15 Directors and any further addition has to be authorized by a special resolution.

Who can be a director of the company?

Only an individual who is not disqualified from holding directorship can be a director of a company which means a body corporate or any artificial person cannot act as the director of a company.

How many directorships can a person hold?

An individual can hold up to 20 directorships including any alternate directorship, mind it that an individual can hold only 10 directorships of a public company or any private company which is a subsidiary of a public company.
Any contravention can attract penalties not less than 5000 and can go up to 25,000 per day of such contravention.

Can a Nonresident act as a director?
Yes, a Nonresident can act as a director but every company is required to have at least one director who is a resident of India.
Any person who was in India for a period of 182 days or more in the previous calendar year is called a resident for the purpose of the act.

Can an additional director be appointed as a director in the general meeting?
Yes, the additional director as appointed by the board can be appointed as a director by the members by passing a resolution in the general meeting, eForms affecting the change of designation have to be filed.