A company registration under certain rules and regulations mentioned in The Companies Act 2013 and by the court of law. The laws make it mandatory for every company to have a director or numerous directors for its proper working and governance. The minimum and a maximum number of directors may vary from company to company based on the provisions mentioned for it in The Companies Act 2013. Let's take a look at the different type of companies and their minimum and a maximum number of directors.
The Companies Act of 2013 defines the minimum as well as the maximum limit of the number of directors that a Company must maintain at all times, before and during the Company's active period.
The minimum number of directors required to run a public company is 3 directors. The maximum number of directors for a public company is 15 directors and if more directors need to be appointed then they can be appointed by passing a special resolution.
The minimum number of directors required for running a private limited company is 2 directors. The maximum number of directors for a private limited company is 15 directors.
The minimum number of partners required for running a limited liability partnership is 2 partners. The maximum number of partners required for limited liability partnership has no limit. They can be extended as much as required by the business.
The minimum number of directors required for running a producer company is 5 directors. The maximum number is 15 directors and the number can be increased by passing a special resolution.
Aside from the number of directors, there are other important questions which should be kept in mind while considering the director or directors of a company.
In general company cases, the founders of the companies become the directors. They are known as the first directors of the company. The articles of the company should mention the names of the first directors. However, new directors can be appointed by passing a special resolution in the general meeting. The notice of such meeting should be provided to the members of the company through a mail.
In general cases, a director is appointed for a term of 5 years. An already appointed director can be re-appointed by passing a special resolution in the general meeting but a minimum gap of 3 years should be provided before the reappointment as a director.
A director can resign from the company by giving a resignation notice in writing to the board of directors. In case of removal, the shareholders of a company can remove a director by passing a resolution in a general meeting.
For further reference, the number of directors for each Company kind is mentioned in The Companies Act 2013 and must be followed by every company owner. To know more about such intricate nuances of a Limited Company procedure, connect with the Incorporation Experts at Registrationwala.