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Directors- Company Management & Remuneration

   Posted On :  14.05.2018 09:32 pm

A company in the eyes of the law is an artificial person. The persons who are in charge of the management of the affairs of a company are termed as directors. They are collectively known as Board of Directors or the Board.

Directors:
 
 
A company in the eyes of the law is an artificial person. The persons who are in charge of the management of the affairs of a company are termed as directors. They are collectively known as Board of Directors or the Board.
 

Definition Of Director:

 
The Companies Act defines a ‘director’ as “any person occupying the position of a director by whatever name called” [Sec.2(13)]. This is however, an inadequate definition.
 

Only Individuals Can Be Directors (Sec. 253):

 
No body corporate, association or firm can be appointed as director of a company.
 

Number Of Directors: Minimum Number (Sec.252):

 
Every public company (other than a deemed public company) shall have at least 3 directors and every other company (e.g., a private company, a deemed public company) at least 2 directors.
 

Share Qualification of Directors

 
The Articles of a company usually require its directors to hold a certain number of shares. Such shares are called qualification shares. The nominal value of the qualification shares should not exceed Rs.5,000. He should obtain his qualification shares within 2 months after his appointment as director.

 

Tags : Business Environment and Law-Company Management & Remuneration
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