1. Basic Eligibility Criteria

• The individual must be a natural person, not a company or other legal entity.
  
• The person must be a resident of India as defined under the Companies Act, 2013.
  
• The minimum age requirement is 18 years.
  
• The individual must possess a valid Director Identification Number (DIN).
  
• The director must hold a Digital Signature Certificate (DSC) for e-filing purposes.
  

2. Legal and Financial Clean Record

• The person must not have been declared insolvent or convicted of any financial offence.
  
• He or she should not be disqualified under Section 164 of the Companies Act, 2013.
  
• Directors must not be associated with companies that failed to file annual returns for 3 consecutive years.
  
• A declaration confirming legal compliance must be submitted in Form INC-9.
  
• Directors must have a clean record to be entrusted with financial responsibility.
  

3. Shareholding and Membership Conditions

• Directors must also be members (shareholders) of the Nidhi Company.
  
• They must subscribe to the Memorandum of Association (MOA) during incorporation.
  
• Only shareholders are allowed to become directors under the Nidhi operational rules.
  
• Membership ensures alignment with the mutual benefit purpose of the company.
  
• Directors have voting rights and can participate in financial decisions.
  

4. Number and Composition Requirements

• A minimum of 3 directors is required at the time of incorporation.
  
• The company must always have at least 3 and not more than 15 directors unless approved otherwise.
  
• At least 2/3 of the directors must have held office as members for not less than 10 consecutive months.
  
• The Board must follow governance practices as laid out in the Articles of Association.
  
• One of the directors may be appointed as Managing Director for day-to-day operations.
  

5. Roles, Responsibilities, and Limitations

• Directors are responsible for managing deposits, loans, compliance filings, and governance.
  
• They must ensure adherence to the Nidhi Rules, 2014, and the Companies Act, 2013.
  
• Directors must approve financial policies, monitor performance, and attend board meetings.
  
• They must not misuse funds, act against member interest, or violate company rules.
  
• Misconduct or non-compliance may lead to penalties, disqualification, or removal from office.