First directors are the directors who hold office from the date of incorporation of the company. Minimum of 3 and 2 directors are required in case of public limited company and private limited company respectively.

Appointment

There are three methods of appointment of first directors:

• The names as specified in the Articles of Association (AOA).
• If the Articles direct the subscribers of the Memorandum to appoint the first director then they appoint the directors.
• In the absence of such clause the subscriber to the Memorandum of Association (MOA), who are individuals will be first directors of the Company till the appointment of directors in the general meeting.
• In certain cases, a public company must hold an extra ordinary general meeting before the first annual general meeting and appoint the first directors by passing ordinary resolutions.

Company Law Compliances

It is prerequisite for all the first directors to apply for DIN (Director Identification Number) and fill Form 32 with the Ministry of Corporate Affairs. Moreover at least one of the directors must have a Digital Signature for registration purpose.

Removal of directors

A director of a company can be removed by

• Shareholders at the general meeting
• Central Government – the person who is so removed cannot hold office of a director for a term of five years unless the period is remitted, or
• The Court – this happens in special cases and not in normal circumstances.

Maximum number of Directorship

A director can apply for directorship of maximum 15 companies, subject to certain conditions and he is free to resign at his discretion.

Taxmantra.com will assist you in all Business Incorporation & Maintenance issues including Creation of LLPs, Companies etc and also in post incorporation issues such as assistance in other registrations, ROC Compliances and others.