Changes in Management of Company
Directors of a company are its eyes, ears, brain, hands, nerves and other essential limbs, upon whose efficient functioning depends the success of the company. The directors formulate policies and establish organizational set up for implementing those policies and to achieve the objectives as contained in the Memorandum, and muster resources for achieving the company objectives and control, guide, direct and manage the affairs of the company.
Changes in management take place in the form of appointment /resignation of Director.
Appointment of First Director
“First directors” mean those directors who hold office from the date of incorporation of the company. Where no provision is made in the articles of a company for the appointment of the first director, the subscribers to the memorandums who are individuals shall be deemed to be the first directors of the company until the directors are duly appointed.
Appointment of Subsequent Director
Subsequent directors must be appointed in accordance with the provisions in the company’s articles of association.
Any person willing to be appointed by a director, and permitted by law to do so can be appointed by ordinary resolution of a general meeting or by resolution of the directors.
Resignation Of Director
A director may resign from his office by giving a notice in writing to the company and the Board shall on receipt of such notice take note of the same by passing a board resolution to that effect and the company shall intimate the concerned Registrar of Companies.