Types of Directors in a Company

Types of Directors in a Company

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Created By Admin Last Updated Thu, 06-Aug-2020

Types of Directors in a Company

As per Section 2(34) of Companies Act 2013, a director is appointed to the Board of a Company. There are different types of directors who play different roles in the company. Here in this article, we will share the types of directors in a company according to the Companies Act, 2013.

1.      Residential Director: – According to Section 149(3) of Companies Act,2013, Every company should appoint a director who has stayed in India for a total period of not less than 182 days in the previous calendar year.

2.      Independent Director: – According to Section 149(6) an independent director is an alternate director other than a Managing Director which is known as Whole Time Director Or Nominee Director. According to Rule 4 of Companies (Appointment and Qualification of Directors) Rules,2013 these are the following type of companies which have to appoint minimum 2 independent directors:-

I} Public Companies which have Paid-up Share Capital-Rs.10 Crores or More; –

II} Public Companies which have Turnover- Rs.100 Crores or More:-

III} Public Companies that have total outstanding loans, debenture, and deposits of Rs. 50 Crores or More.

3.      Small Shareholders Directors: – Small shareholders can appoint a single director in a listed company. But this action needs a proper procedure like handing over a notice to at least 1000 Shareholders or 1/10th of the total shareholders.

4.      Women Director: – As per Section 149 (1) (a), there are certain categories according to which there should be at least one woman as a director on the Board. Such companies are any listed company or any public company having. There are types of directors in women director also:

5.      Additional Directors:- Any Individual can be appointed as Additional Directors by a company under section 161(1) of the New Act.

6.      Alternate Directors:- As per Section 161(2), a company may appoint, if the articles confer such power on the company or a resolution is passed (if a Director is absent from India for at least three months).

7.      Shadow Director:– A person who is not a member of the Board but has some power to run it can be appointed as the director but according to his/her wish.

The minimum number of directors required:

i. One Person Company: – One Director

ii. Private Limited Company: – Two Directors.

iii. Public Limited Company: – Three Directors.