In order to manage any business, company or any organization it requires one or the other directors or the collective body which is also known as the board of director. These board of directors are responsible for the managing, controlling, handling the affairs of the company.
Directors are the only body who are responsible for all the capital of the company, it could be fund, property, land, machinery and all.
All the directors are equally or rationally (according to their deed) entailed for each and every obligations and duties with their skills, knowledge, experience and many more things. Even we can’t say that the directors have just limited work, they have lots of things to do. Directors play multiple roles into their business, as they have to be employee, agent, business planner, manager, worker, and trustee. Being a director is not the easy task they have to being alert all the time in the different aspects whenever they need.
Let’s know about the maximum and minimum numbers of directors in the companies
According to the law the government says that every public company must have at least 3 directors, every private limited company must have at least 2 directors and the one person company must have at least 1 director. All the company have the limit of maximum director is 15. There are also the rule is the company can appoint more directors by passing the special resolution in its general meeting.
Types of directors
- Resident director: According to the law every company must have to appoint a director who has been in India in the previous year and minimum for the 182 days. Then only they the director will be consider as resident director.
- Woman director : According to the law the private or public company both are required to have at least one female director in two following cases.
- 1st is when the particular company is listed and it is also listed on stock exchange for the security purpose.
- 2nd is the paid-up capital of the company is 100 crore or the turnover of that company is 300 crore and the more.
- Additional director : As we know that every company has the maximum no. of directors to be appoint but according to the law they can also appoint extra director as well which is called additional director.
- Which can be appoint till the date of next annual general meeting.
- Alternate director : Alternate director is appointed by the board itself for the purpose of replacement of the any director who are absent from the country for more than 3 months.
- Nominee director : Nominee director are the directors which is use to choose by the shareholder to represent the company, they don’t have much involvement in the company. They just appoint to show the transparency of the financial statement with the other director.
- Small shareholder director : Small shareholder director are director which is appoint by the small shareholders as a director of the company who’s nominal value of share should have less than Rs 20000.