Types of Directors as per Companies Act 2013

Types of Directors as per Companies Act 2013

1. Residential Director: – According to Section 149(3) of Companies Act 2013, Every company should appoint a director who has stayed in India for a total Period of not less than 182 days in the previous calendar year.

2. Independent Director: According to Section 149(6) an independent director is an alternate director other than a Managing Director who is known as Whole Time Director Or Nominee Director. The following type of companies has to appoint minimum Two independent directors:-

a) Public Companies which have Paid-up Share Capital- ₹10 Crores or More; –

b) Public Companies which have Turnover- ₹100 Crores or More:-

c) Public Companies which have total outstanding loans, debenture, and deposits of ₹50 Crores or More.

3. Small Shareholders Directors: Small shareholders can appoint a single director in a listed company. But this action needs a proper procedure like handing over a notice to at least 1,000 Shareholders or 1/10th of the total shareholders.

4. Nominee Director: "A director nominated by any financial Institution in pursuance of the provisions of any law for the time being in force, or of any agreement, or appointed by any Government , or any other person to represent its interests”.

From the above,

a) should be nominated by any financial Institution in pursuance of any law or in terms of an agreement entered into by the company

b) could be appointed by the Government or by any other person.

c) The person so appointed shall represent the interests of the organization /Institution which he represents.

5. Women Director: As per Section 149 (1) (a), there are certain categories according to which there should be at least one woman as a director on the Board. The following class of companies shall appoint at least one woman director

(i) every listed company;

(ii) every other public company having:

(a) paid–up share capital of one hundred crore rupees or more; or

(b) turnover of three hundred crore rupees or more.

6. Additional Directors: Any Individual can be appointed as Additional Directors by a company.

7. Alternate Directors: Alternate director is appointed by the Board of Directors, as a substitute to a director who may be absent from India, for a period which is not less than three months. The appointment must be authorised either by the Articles of Association of the company or by a passing a resolution in the General Meeting. The alternative director is not a representative or agent of Original Director.

8. Shadow Director: A person who is not the member of Board but has some power to run it can be appointed as the director but according to his/her wish.