As per the Act, an One Person Company, Private Limited Company, and Public Limited Company requires at least 1, 2, and 3 directors in-charge respectively. Apart from that, an organization can appoint a new director on numerous grounds:
• Bringing in new Talent and Proficiency
• Expanding business venture
• Death / Removal / Retirement of an existing director
• Requirement of woman director in the company (for companies with more than Rs.300 Crore annual turnover)
• Appointing a Nominee Director by the Central Govt. as per Section 161(3) of the Act (in case of mismanagement & oppression)
• Appointing an Independent Director following Section 149(6) of the Act

In a private company, following their Article of Association (AoA), the shareholders can appoint an individual as the director of that particular organization. In case of a Nominee Director, the Govt. of India carries out the necessary procedure. The individual being appointed as the director, should fulfill the following criterias:
• Age between 25-70
• Resident of India (Staying in India for not less than 12 months at a stretch)
• Not have been sentenced to imprisonment for any period
• Not have been detained under the Conservation of Foreign Exchange & Prevention of Smuggling Activities Act, 1974

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