Question

Essay Type Questions:
Explain the different ways of appointing directors.

Answer 1

Generally, in a public company or a private company subsidiary of a public company, two-thirds of the total numbers of Directors are appointed by the shareholders and the remaining one-third is appointed in accordance with the manner prescribed in Articles failing which.The shareholders elect the Board of Directors. But there is usually a nominating entity that puts directors up for election by the shareholders. If the founder controls the company, then he/she is usually that nominating entity.

A Minimum Number of Directors Required in Company

1. Minimum two directors in case of Private Limited Company.
2. Minimum three directors in case of Public Limited Company.
3. In the case of one person Company minimum one director.
4. Maximum 15 directors any Company shall have If Company wants to have more than 15 directors necessary approvals is required under the law.