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Company registration involves a series of legal, procedural and administrative steps. One of the most important steps involved in this process is appointing the company’s directors. Directors are responsible for managing, directing, supervising and controlling the affairs of the company. A company cannot be incorporated without appointing the minimum number of required directors. Additionally, there is a prescribed limit on the maximum number of directors a company can appoint.
It is interesting to note that the minimum and maximum number of directors are not uniform across all types of companies. They tend to vary depending on the nature of company. For instance, the requirement for the minimum no. of directors for a one person company differs from that of a private ltd company and a public ltd company. In this blog post, we shall discuss the minimum and maximum number of directors in a company based on its type.
The Companies Act, 2013, which is the primary legislation for governing companies in India, quite clearly defines the minimum as well as the maximum limit of the no. of directors that a company is required to maintain at all times, before and during the company's active period. Below, we have described these requirements based on different types of companies :-
The minimum no. of directors required to run a public ltd company is 3 directors. The maximum no. of company directors for a public company is 15 company directors.
If more company 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 this company is 15 directors.
If necessary, a pvt ltd company can appoint more than 15 directors by passing a special resolution in a general meeting.
A Nidhi company is incorporated as a public company. Therefore, the minimum and maximum no. of directors it can have are the same as those of a public company.
This means that the Nidhi company must have at least 3 directors and can have a maximum of 15 directors. The maximum limit may be increased by passing a special resolution.
A One Person Company needs to have at least 1 director at all times. The director and the sole member of this company can be the same individual. The maximum no. of directors a One Person Company can have is 15 directors.
With that being said, such a company may appoint additional directors if deemed necessary for efficient management via a special resolution.
The minimum number of directors required for running a producer company is 5 directors. The maximum number of directors such a company can appoint is 15 directors.
In a Section 8 company incorporated as a pvt ltd company, a minimum of two directors are required. If it is incorporated as a public ltd company, a minimum of 3 directors are required.
The maximum number of directors a Section 8 Company can have is 15 directors. If necessary, this limit may be increased by passing a special resolution.
In general company cases, the founders of the companies usually become the directors. They are known as the first directors of the company. The articles of the company should mention the names of these first directors. The new directors can be appointed by passing an ordinary resolution in the general meeting.
For exceeding 15 directors, a special resolution is required. The notice of such a meeting should be provided to the members of the company through mail, post or other authorized methods.
The working tenure of a company's director varies based on their designation, i.e., whether they are an independent, managing, or additional director. In general, an independent director is appointed for a term of up to 5 years. Such a director may be reappointed for a second term by passing a special resolution in a general meeting.
However, after completing two consecutive terms, a cooling-off period of at least 3 years must be observed before they can be reappointed as an independent director. During this period, they cannot be associated with the company.
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 required for each company type is stated under Companies Act, 2013 and must be complied with by every company and its management. If you need assistance in company registration in India, you can connect with our Incorporation Experts at Registrationwala.
Q1. What is the minimum no. of directors an OPC must have?
A. A One Person Company must have at least one director at all times.
Q2. Do LLPs need to appoint directors?
A. No, LLPs do not need to appoint directors. Appointing directors is mandatory for companies registered under the Companies Act, 2013, and not LLPs registered under the LLP Act, 2008.
Q3. What is the minimum no. of directors a pvt ltd company must have?
A. A pvt ltd company must have at least 2 directors at all times.
Q4. What is the maximum no. of directors a public company can appoint?
A. A public company in India can appoint a maximum of 15 directors. However, if necessary for business operations, this limit can be increased by passing a special resolution.
Q5. Can a One Person Company’s sole member also be its sole director?
A. Yes, a One Person Company’s sole member can also be its sole director.
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.
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