Appointing new directors happen when a business is in expansion mode or if current directors want to add one or more people on company’s board of director list. All directors may or may not be investors in nature. Few companies also hire executive directors to fulfill a specific responsibility.
Process of appointing new directors
First of all appointment of director is responsibility of current board of directors. After appointing new directors board must notify registrar of companies about this change.
All directors must have Director Identification Number or DIN and at least one of them must have DSC or digital signature to complete this process.
You also need to update Articles of Association (AOA) as part of this process.
There can also be role based directors in a company like Additional Director, Managing Director, Alternate Director or Executive Director.
To add director in a company, take help of Chartered Accountant to proceed further with this requirement.