directors of company
TRANSCRIPT
Director is an officer Management of the affairs of company Agent and representative of the company
Term of directorAccording to section 176 A director holds office till the election of new director
Number of directorsAccording to section 174 Private company minimum 2 directors Listed public company minimum seven directors Unlisted company minimum three directors Single member company holds one directorAppointment of directorDirector can be appointed by following ways Promoters appoint director by buy shares Shareholders elect director in meeting Directors may select a director
According to section 186 A person who is representative of government A person who is member of an institution or authority A chief executive A person representing a creditor An employee of the company Any person other then artificial person
Disqualification of directorDisqualification of director According to section 187 A minor An unsound mind person An insolvent person A person convicted by the court A person who is not the member of company A person who not give written agreement
Following are different kinds of directors Elected director Directors elected by subscribed members of company Elected by the shareholders in meeting Nominated director Directors nominated by the members of company Nominated by government, creditor, investors Election, terms & conditions are not considered Ex-officio director Chief executive of company acts as director Designation create such authority Sole director Single member company has one member who is director Nominee director Single member company director may appoint sub director Alternative nominee director Single member company also appoint alternative director
According to section 196 To issue the shares & bonds To allot the shares To invest the funds of company To sell available goods & services To approve bonus for employees To determine dividend To fill vacant seats of directors To make contracts on behalf of company To maintain reserve funds To compensate any damage caused by companyDuties of director To arrange general meetings of company Should submit report of meetings Arrange the audit of company accounts Design and implement the policies To make arrangement of the payment of dividend
