Appointment & Resignation of Director Services
The appointment and resignation of directors are important corporate actions that must be reported to the Ministry of Corporate Affairs (MCA) through prescribed filings. Whether inducting new leadership or recording a director’s resignation, businesses must follow proper procedures under the Companies Act, 2013. Our expert team ensures smooth processing, documentation, and statutory compliance for both appointments and resignations.
Types of Appointment / Resignation of Director Services
The procedures differ based on the type of change being made in the company’s directorship.
Appointment of Additional Director
Appointed by the Board of Directors, usually for a temporary role until the next AGM.
Appointment of Director in General Meeting
Formal appointment of a director by shareholders through approval at the Annual General Meeting (AGM).
Resignation of Director (Voluntary)
A director may resign by giving notice to the company, and the company must file the resignation with MCA.
Removal of Director by Company
A company may remove a director before the end of their term, following due procedure and shareholder approval.
Appointment of Independent Director
Independent directors are appointed to ensure transparency, governance, and oversight in listed/public companies.
Change in Designation of Director
For instance, changing from a director to managing director, whole-time director, or vice versa.
Why Appointment / Resignation of Director is Important?
Legal Requirement
Proper filing ensures compliance with the Companies Act and prevents penalties.
Corporate Governance
Correct appointment/resignation strengthens accountability and transparency.
Operational Continuity
Brings in skilled leadership or updates official records when a director exits.
Regulatory Accuracy
Keeps the MCA and public records updated about the company’s leadership structure.
FAQs
How is a new director appointed in a company?
A director can be appointed either by the Board of Directors or by shareholders in a general meeting, followed by filing Form DIR-12 with MCA.
What is the process for a director’s resignation?
The resigning director must submit a resignation letter and the company must file Form DIR-12 along with the notice of resignation to MCA.
Can a director resign without company approval?
Yes, a director may resign by giving notice, and the resignation is effective once filed with the MCA, regardless of company approval.
Is filing with MCA mandatory for both appointment and resignation?
Yes, Form DIR-12 must be filed within 30 days of the appointment or resignation to update MCA records.
Can the same person be a director in multiple companies?
Yes, but there are limits as per the Companies Act – up to 20 companies (of which a maximum of 10 can be public companies).