~All about the directors of the company~💛

DIRECTOR OF COMPANY 

Director of a company are individual who are elected for the management of the corporation related to policy and to make decisions for the major issue of the companies.The success of the company depends upon the competence and integrity of the directors of the company

TYPES OF DIRECTORS

* First director (firstly appointed director of the company within incorporation).

* Residential director ( who is resident to India).

* women director (there shall be  atleast one women director after the completion of number of paid up shares and turnover  exceed as per companies act, 2013).

* Independent director (who has no relation with the company shares).

* Alternate director (alternate director is an individual who is appointed to attend a board meeting on behalf of the director of a company where the principal director would be otherwise unable to attend).

* Additional director (who is appointed by boards of directors and can hold the company till next annual general meeting).

* Small shareholder director (if company is carrying any shareholder with small paid up share there should be atleast one small shareholder director to work for their benefits).

* Nominee director (it should be an individual who is appointed by the financial institutions, banks where such institutions have some interest in the company the interest can be in form of financial assistance, loan or investment).

APPOINTMENT

public company shall have atleast 3 directors

Maximum 15 directors

Private company shall have atleast 2 directors

Maximum 15 directors

One person company shall have atleast one directors

Maximum number can be increased by passing special resolution.

DIRECTOR IDENTIFICATION NUMBER

Every individual who tends to be appointed as a director of a company needs to file a form as prescribed under sec 153 of companies act, 2013 for the allotment of DIN (director identification number).

A director shall exercise independent judgement.

RIGHTS AND DUTIES OF DIRECTORS

To act in good faith

(Promote the object of the company for the benefit of the members)

To act as per articles of the company

(The directors shall comply in accordance with the articles of the company)

To avoid conflict of interest

( Director may not directly or Indirectly have interest to the conflicts or involve in interest of the company)

Exercise due care 

(Director shall exercise his duties with reasonable care, skill and diligence)

Duty not to make undue gain 

(A director shall not achieve, gain or take any advantage either himself or to his relatives, partners, or association. If the director found guilty under undue gain shall be liable to pay the fine amount equal to that gain to the company).

Not to assign his office

( Shall not assign his office or any assignment to any other person, if made shall be considered void).

A DIRECTOR MAY BE REMOVED FROM THE OFFICE BY GIVING SPECIAL NOTICE.

A DIRECTOR MAY RESIGN HIS OFFICE IN THE MANNER PROVIDED BY THE ARTICLES.

I hope this was helpful to you 😁🙏❤️ Thanks for reading my blog.