A director is a person who the shareholders elect to manage all the affairs of the company. It is mandatory to provide the names of the first directors in the Articles of Association of the Company. Every time the appointment of directors is done by the members of the company in the general meeting, excluding the first directors. An additional director can be appointed for the company, if required, in a meeting other than the General Meeting.
Minimum number of Directors as per section 149(1)(a):
- 3 in case of a Public Limited Company
- 2 in case of a Private Limited Company
- 1 in case of a One Person Company
The appointment of directors is governed by section 152 of the Companies Act, 2013. A Directors Identification Number (DIN) and Digital Signature Certificate (DSC) is a prerequisite for the appointment of directors.
There is no prohibition on the appointment of a foreign national as the director of any Indian Company as per the Companies Act, 2013.
However, as per section 149(3), every company is bound to appoint at least one Resident Director who has lived for a minimum of one hundred and eighty-two days in India during the financial year.