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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