Question

Define the term Director. Write about the qualification, appointment, powers and duties of the Director.

Answer 1

A director is one of those persons who are responsible for directing ,controlling the policy or management of a company. All directors collectively are called board of directors . They are the top administrative organ and the company can operate only through them . Generally no formal or special education or skill is required to qualify to hold the office of a firm's director. But if a director posses special expertise or knowledge , he is expected to employ it to the firm's advantage.

The appointment of directors is done as per companies act 2013:

1. public limited company or private company subsidiary of public company: 2/3 are appointed by shareholders and rest 1/3 as per articles and failing to which will be appointed by shareholders.

2. private limited company:as per prescribed articles appointment of all directors. failing to it shareholders will select the directors of the company.

The powers of directors are mentioned below:

1. To make call on shares in respect of unpaid money.

2. To appoint the first auditor of the firm.

3. To approve financial statement and board's report.

4. To authorize the lack of shares.

The duties of directors include:

1. To policy and determine the objectives of the company.

2. To issue instruction to the subordinates for the implementation of policies .