Monday to Saturday, 10:00 to 18:30 +91 98388 58995  |  ca.ameesh@gmail.com
Ameesh Gupta & Co.Chartered Accountants, Kanpur

Company law and LLP · Directors, meetings and changes

How is a director appointed or removed, and what are DIN, director KYC and disqualification?

Short answer

Every director needs a Director Identification Number (DIN). The board can appoint an additional director, who must be confirmed at the next AGM, and the company files DIR-12 within 30 days. Shareholders can remove a director by ordinary resolution after a special notice and a hearing. Since March 2026, director KYC is filed once every three years. A director of a company that has not filed returns for three years is disqualified for five.

DIN

A DIN is allotted once and is valid for life. It is obtained in SPICe+ at incorporation, or in DIR-3 for a person joining an existing company. One person can hold only one DIN.

Appointing a director

  1. Get the person's consent (DIR-2) and declaration that they are not disqualified (DIR-8).
  2. The board appoints them as an additional director (if the articles allow), to hold office until the next AGM, or the members appoint them at a general meeting.
  3. File DIR-12 within 30 days.
  4. The additional director is regularised at the next AGM.

Every company needs at least one director resident in India (182 days or more in the year). A person can be a director in up to 20 companies (10 public companies).

Resignation and removal

  • Resignation: the director gives written notice; the company files DIR-12 within 30 days. The director may also file DIR-11.
  • Removal: by ordinary resolution of the members, after a special notice; the director has the right to be heard and to circulate a representation (section 169). Directors appointed by the Tribunal cannot be removed this way.

Director KYC: once every three years

From 31 March 2026, KYC is filed in DIR-3 KYC Web once every three financial years, by 30 June of the year it falls due. Directors who completed KYC under the old annual system next file between 1 April and 30 June 2028.

A change in mobile number, email or residential address must be updated within 30 days. If KYC is missed, the DIN is deactivated and costs ₹5,000 to reactivate.

Disqualification

A person cannot be a director if, among other things, they are an undischarged insolvent or have been convicted of certain offences (section 164(1)).

Under section 164(2), a person who is a director of a company that has not filed financial statements or annual returns for three continuous years, or has defaulted on deposits or debentures for a year, cannot be reappointed in that company or appointed in any other for five years.

A director's office also falls vacant if they miss all board meetings for 12 months without leave (section 167).

Legal basis

  • Sections 152, 153, 161, 164, 167, 168 and 169, Companies Act, 2013
  • Rule 12A, Companies (Appointment and Qualification of Directors) Rules, 2014, as substituted from 31 March 2026

Official sources

Related questions

Disclaimer

The Institute of Chartered Accountants of India does not allow its members to solicit work or advertise. By choosing "I agree", you confirm that:

I do not agree