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Do all the investors in a pvt ltd co. become director of th

jagadeesha h r (proprietor) (32 Points)

30 August 2011

WE 7 investors have decided to form a pvt ltd co. My question is all the seven members are the directors of the co? or members with DIN no only called directors? how many members should be there in the board of directors? what happens if a member does not hold DIN no.? can he continue as investor? can anybody please help/ clarify my doubts?

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3 Replies

Amit Gupta (Loosening Myself) (1508 Points)
Replied 31 August 2011

In case of private co- 2 directors are mandatory.Only directors should apply for DIN before appointing as director and no other member need to have DIN

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SkDash (CS (Member) CWA (Final)) (909 Points)
Replied 31 August 2011

Jagdeesha

1. Investors (commonly known as shareholders) are different from directors (means person selected to manage the day to day affairs of the Company). So you all can be the directors of the company if so decided. or Else minimum 2 person should be the directors since a pvt co.

2. To became a director, a person need to have his/her DIN. before with provisional DIN also , he/ she can be appointed as Director.

3. DIN is not a requirement to be an investor, its only required to be appointed as a director

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vignesh (student) (783 Points)
Replied 31 August 2011

All the shareholders of the newly incorporating company can be act as directors in your case i.e. 7 directors is possible. the person who is entitled to become a director requires DIN. After getting the DIN an individual eligible to become a director of the company. If the member doesnot have DIN number then he will continue as a Shareholder or investor in the company.

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