Appointment of a Director is not only a crucial administrative requirement, but is also a procedural requirement that has to be fulfilled by every company. Under the Companies Act, only an individual can be appointed as a Director; a corporate, association, firm or other body with artificial legal personality cannot be appointed as a Director.
First directors of a firm are appointed by the original investors (members or subscribers) usually from among themselves, and are named in the articles of association. However, mention in the articles does not constitute a valid appointment until the person gives his or her signed consent to hold the office of director, and is not disqualified (for any reason) from holding that office. Appointment or election of the subsequent directors is usually effected at a general meeting by a resolution to the effect. But the existing directors often have the power to fill vacancies on the board of directors at any time, subject to confirmation later at a general meeting.
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