Change in Designation of Director
Change in Designation of Director
A director’s designation may change for several reasons—promotion to Managing Director, reclassification as Whole-Time Director, shifting to Non-Executive status, onboarding as a Nominee Director or converting to an Independent Director. Since each designation carries different responsibilities and compliance requirements, the change must be properly documented and filed with MCA. A clean update ensures clarity in governance and avoids any ambiguity in future audits or legal matters.
What We Assist With
• Reviewing the existing board structure and required designation changes
• Drafting Board and shareholder resolutions
• Preparing consent letters, declarations and revised terms
• Filing Form DIR-12 with MCA
• Updating statutory registers and minutes
• Guidance on role responsibilities and compliance after designation change
• Support for updating GST, bank records and other platforms if required
Why Designation Change Happens
• Appointment as Managing Director or Whole-Time Director
• Reclassification from Executive to Non-Executive role
• Investor/nominee representation on the board
• Appointment of Independent Directors (where applicable)
• Governance restructuring or regulatory requirements
Frequently Asked Questions
Whenever a director assumes a new role—Managing Director, Whole-Time Director, Additional Director, Non-Executive Director, Nominee Director or Independent Director.
Yes. The Board must approve all designation changes. Some changes also require shareholder approval.
Form DIR-12 must be filed within 30 days of the designation change.
Yes. Updated consent, declaration and disclosure (MBP-1) may be required depending on the role.
Roles like Managing Director, Whole-Time Director and Independent Director require shareholder approval.