A company is established 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.
Directors for a public company
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.
Directors for One Person Company
The minimum number of directors required for running the business is one director. The maximum number of directors for a One Person Company is 15 directors and if more directors are required to be appointed then they can be appointed by passing a special resolution.
Directors for Private Limited Companies
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.
Partners for a Limited Liability Partnership
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.
Directors for Producer Company
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.
How is a director appointed?
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.
Working tenure of directors
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.
Resignation or removal of 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.
The number of directors is mentioned in The Companies Act 2013 and it has to be followed by every company owner.