Appointment/Change of Directors
Directors are appointed by the shareholders of a Company for the managing the daily affairs of a Company. As per Companies Act, 2013 , a Private Limited Company is required to have a minimum of two Directors and a Public Limited Company is required to have a minimum of three Directors which may extend to fifteen. It is possible to appoint more than fifteen directors in a company by following a specific procedure.
On the other hand, a Limited Liability Partnership (LLP) has Designated Partners and Limited Liability Partnership Act, 2008 requires each LLP to have a minimum of two Designated Partners.
Appointment or removal of a Director or Designated Partners is required due to various reasons which may even be due to resignation or change in management.To add a Director or Designated Partner, Digital Signature must first be obtained for the proposed Director. Once, Digital Signature is obtained, the proposed Director can be added into the Company with the consent of the shareholders. To remove a Director from a Company or LLP, it is important to ensure the Company or a LLP would have the minimum required number of Director or Designated Partner after removal of the Director. If so, then the resignation letter along with the required form must be filed to effect the resignation of the Director.
HIGHLIGHTS OF CHANGING DIRECTORS
An OPC cannot convert voluntarily into any kind of company unless two years have expired from the date of incorporation of One Person Company,
except threshold limit (paid up share capital) is increased beyond Rs.50 Lakhs or its average annual turnover during the relevant period exceeds Rs.2 Crores i.e., if the Paid-up capital of the Company crosses Rs.50 Lakhs or the average annual turnover during the relevant period exceeds Rs.2 Crores, then the OPC has to invariably file forms with the ROC for conversion in to a Private or Public Company, with in a period of Six Months on breaching the above threshold limits.
