What are the legal requirements for appointing and removing directors in India?

Answer By law4u team

n India, the appointment and removal of directors in a company are governed by the Companies Act, 2013, and the rules made thereunder. The following are the legal requirements for appointing and removing directors in India: Appointment of Directors: Eligibility criteria: A person must meet the eligibility criteria for appointment as a director, including being over 18 years of age, not disqualified under any law, and not an undischarged insolvent. Obtaining Director Identification Number (DIN): Before being appointed as a director, the person must obtain a DIN from the Ministry of Corporate Affairs. Board resolution: The board of directors must pass a resolution to appoint the person as a director. Filing of Form DIR-12: The company must file Form DIR-12 with the Registrar of Companies within 30 days of the appointment of the director. Intimation to the stock exchange: If the company is listed on a stock exchange, the appointment must be intimated to the stock exchange within 24 hours of the appointment. Removal of Directors: Board resolution: The board of directors must pass a resolution to remove the director. Notice to the director: The director must be given a notice of the proposed resolution and an opportunity to be heard. Filing of Form DIR-12: The company must file Form DIR-12 with the Registrar of Companies within 30 days of the removal of the director. Intimation to the stock exchange: If the company is listed on a stock exchange, the removal must be intimated to the stock exchange within 24 hours of the removal. In addition to the above legal requirements, a company's articles of association may also provide for additional requirements for the appointment and removal of directors. It is advisable to consult a legal professional or corporate consultant for guidance on compliance with the legal requirements for appointing and removing directors in India.

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