Short Note on 'DIRECTORS' SYBCOM SEM 4 Mumbai University.

                                                          DIRECTORS                                                                                 

Introduction :
A company is a person independent of its members. Company can do business in its own name, hold property in its own name, can take legal actions in its own name. However, a company is not a natural person. Thus, business of a company can be conducted only through human agency. Directors are the people who conducts the business of the company.

*Sec 2[34] defines a director as ' Director appointed by Board of a company.'
*Sec 2[10] defines Board of Directors as 'The collective body of directors of the company.'

Nature of company                        Minimum No. of directors                 Maximum No. of director
1) One Person Company                                   1                                                             _
2) Private Company                                          2                                                            50
3) Public Company                                           3                                                            50

*Qualification of a director : 
Director is appointed or elected member of Board of Directors of a company. He has the responsibility for determining and implementing the company policies. There is no specific qualification for a person to become a director. Hence, the only condition to be fulfilled is the person should be competent to contract. In case of a public company, the director has to hold some minimum shares at the time of appointment which are known as 'Qualification Shares'.

*Disqualification of the director :
1) If he is of unsound mind.
2) If he is declared incompetent by Court of Law.
3) If he is insolvent.
4) He has been convicted and sentenced to imprisonment.
5) Any order is passed by any court or tribunal disqualifying him for appointment of a director.
6) He has not paid any call money in respect of shares held by him.
7) He has not obtained the DIN (Director Identification Number).
8) A person who is a director but has failed to fill financial statement or annual returns.
9) A person who is a director of a company, who has failed to repay deposits, debenture, interest, dividend.
10) Where a director is disqualified from being a director for more than 20 companies.

*Women Director :
Every company which is listed or has a paid up share capital of Rs. 100 crores or turnover of 300 crores or more should compulsorily have women directors.
              If a new company is coming under this category should appoint a director within 6 months from the date of incorporation or the vacancy should be filled before the next Board Meeting of 3 months whichever is later.

*First Director :
The number of directors appointed to the Board of Director of a company depends upon the share capital and the requirement of a company. The number of director and the name on the director shall be in writing by the subscribers of memorandum.
            First directors can be specified in Articles of Association of a company. If there is no provision to appoint first director, the subscribers of memorandum are usually considered as the first director of the company.
            In case of One Person Company, the individual member who started with the business shall be considered as first director of the company.

* Director Identification Number (DIN) :
1) Every director should obtain a DIN Number.
2) Central government allots DIN Number to every director in one month.
3) A director cannot have more than one DIN Number.
4) Duplicate DIN Number is a punishable offence.
5) Every director should inform the company about his DIN Number within one month.
6) Every Company should inform Registrar of Companies about it's director's DIN Number in 15 days of receipt.