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.