COMPANY LAW
UNIT 3
COMPANY ADMINISTRATION &
MANAGEMENT
By Sherab Wangdi
1. Director: Concept and Definition
1.1 Concept of Director
A director is an individual appointed to the board of a company to manage its affairs
and make strategic decisions.
Directors can be executive, non-executive, or independent, each with distinct roles and
responsibilities.
Directors act as fiduciaries and are expected to act in the best interest of the company
and its shareholders.
1.2 Definition of Director (Section 2(34) of Companies Act, 2013)
The Companies Act, 2013, defines a director as "a person appointed to the Board of a
company."
This definition encompasses all individuals who are part of the Board, irrespective of
their specific titles or roles within the Board.
, 2. Director Identification Number (DIN) (Sections 152(3), 154, 155, and 156 of Companies
Act, 2013)
2.1 DIN:
A Director Identification Number (DIN) is a unique identification number allotted to
an individual who is appointed as a director of a company.
DIN is mandatory for all directors and must be obtained before being appointed to the
Board.
2.2 Obtaining DIN:
The application for obtaining a DIN is filed using eForm DIR-3.
The applicant must submit proof of identity and address, along with the form.
The DIN is issued by the Central Government upon verification of the application.
2.3 Maintenance of DIN:
Directors are required to inform the company about their DIN.
Any changes in particulars of the DIN must be intimated to the Central Government in
eForm DIR-6.
UNIT 3
COMPANY ADMINISTRATION &
MANAGEMENT
By Sherab Wangdi
1. Director: Concept and Definition
1.1 Concept of Director
A director is an individual appointed to the board of a company to manage its affairs
and make strategic decisions.
Directors can be executive, non-executive, or independent, each with distinct roles and
responsibilities.
Directors act as fiduciaries and are expected to act in the best interest of the company
and its shareholders.
1.2 Definition of Director (Section 2(34) of Companies Act, 2013)
The Companies Act, 2013, defines a director as "a person appointed to the Board of a
company."
This definition encompasses all individuals who are part of the Board, irrespective of
their specific titles or roles within the Board.
, 2. Director Identification Number (DIN) (Sections 152(3), 154, 155, and 156 of Companies
Act, 2013)
2.1 DIN:
A Director Identification Number (DIN) is a unique identification number allotted to
an individual who is appointed as a director of a company.
DIN is mandatory for all directors and must be obtained before being appointed to the
Board.
2.2 Obtaining DIN:
The application for obtaining a DIN is filed using eForm DIR-3.
The applicant must submit proof of identity and address, along with the form.
The DIN is issued by the Central Government upon verification of the application.
2.3 Maintenance of DIN:
Directors are required to inform the company about their DIN.
Any changes in particulars of the DIN must be intimated to the Central Government in
eForm DIR-6.
