As rightly defined in Section 2(13) of the Companies Act, 1956, a Director as any individual who obtains the position of Director and needs to be identified in the Company agreement. A proper documentation is done for the appointment, retirement rights duties and the remuneration of the directors and the document is termed as AOA(Article of Association)
Broadly the rights are classified into two types;
The Board of Directors are the elected representatives of the company which may consist of the shareholders and others contributing shares to the enterprise. It is the responsibility of the Board of Directors for designing the policies and keeping the governance rule intact within the Company. The Board has a curator position and holds the position of administration to protect and improve shareholder profit through strategic policy and governance. Board’s responsibilities mainly demand the operation of judgment for which the Board necessarily has to be covered with powers and a moderate level of discretion. It consist of two types of directors, part-time directors and whole time directors. The individuals attending board meetings and contributing to the strategic policies and judgment in the board meetings are called the Part-time Directors. For the Whole time directors, the name itself defines that they treated as employees, it is similar to the position of Managing Director and this division of directors are committed with tangible powers of management to look after the daily affairs of the organization.
The right to appoint directors is worked out by the shareholders in First Annual General Meeting as mentioned in the terms of Section 255 and objectives in the Articles of Association. It is also permitted to appoint additional Directors who operates office up to the Annual general meeting. In case a vacancy is caused by resignation /death of an existing director then they are responsible to hold office up to the term of first director in whose place he is appointed.
The resignation by the Companies directorship takes effect immediately from the date of the resignation letter, if the Article of Association consist of concerned content about the specific provision.
There are major Collective rights given to the directors of a Company they are as follows;
The Company Director is a high dignitary officer who is appointed to manage and direct the day-to-day business activities and also keep a note of finances in a Company. He is the one who is responsible for statutory filing obligations. The company Director is expected to abide by the law and be honest to the company, make important decisions and take the company at heights.
According to the Companies Act 2006, the duties and responsibilities of the Directors are written in the Article of Association that is filed during the company registration. The duties consist of the following principles:
According to the Companies Act there are certain duties to be done by the Directors, these general management duties may include: