Board of Directors

Section 149 of companies act 2013 contains provision which require that every company shall have to constitute Board of Directors.

Types of Companies and minimum or maximum limit of board of Directors
Who can become a Director in a company?

Only an Individual can become a director in a company

Minimum age to become a Director?

Any adult person can become a director in a company. The act does not mention anything about minimum age criteria to become a director that means minimum age shall be 18 years

Is there any provision for a woman to compulsory become a Director?

Yes a company have to appoint at least one Woman Director (Rule 3)

Maximum number of Directors a company can appoint?

Maximum 15 Directors can be appointed by a company. However, the limit can increase after passing a special resolution

What is DIN?

DIN stands for Director Identification Number. It is an eight numerical digit number. Any person intends to become a Director compulsorily needs a DIN

What is a Resident Director?

Every company must have at least one director who stays in India for a period of not less than 182 days in a financial year

What is the difference between DPIN and DIN?

DIN is used as DPIN for Designation Partner Identification number for the purpose of Limited Liability Partnership or LLP

Minimum Number of Director in a Company
One Person CompanySingle Director
Private Limited CompanyAt least 2 Directors
Public Limited CompanyAt least 3 Directors
Class or list of company requires appointment of a woman director
  • Every Listed Company
  • Every other company having
    • Paid up share capital of One Hundred Crore Rupees or More, or
    • Turnover of Three Hundred Crore rupees or more

Note: The turnover and capital should be based on latest audited financial statements
* Listed company means which is listed in any stock exchange

Duties of a Director
  • He should always act according the rules and regulations of the company
  • He must act for promotion of the company
  • Perform his duties with reasonable care
  • He should always avoid working towards his personal benefits
  • Must not assign his place or office to anyone, as it is void

To read about reactivation of DIN after disqualification under section 164(2)

To read more about Board of Directors visit here

Leave a Reply