Duties of Director
Directors act as agents of the shareholders and act
as a trustees of shareholders. Thus they have a fiduciary duty to protect the
property of the company. Simply stated the following are the duties of
Collective Duties of Directors: Directors as a part of Board perform certain duties
collectively. The following are some of those duties exercised collectively:-
Approval of annual accounts and authentication of annual accounts
(ii) Directors report to shareholders highlighting
performance of the company, transfers to reserves, investment of surplus funds,
(iii) Appointment of First Auditors
(iv) Issuance of Notice and Holding of Board
meetings and shareholders meetings
(v) Passing of resolutions at board meetings or by
(i) Structuring or new policy to reach the
objectives of a company.
(ii) Delegating power to any committee if the
Articles Permits for well being of the company
(iii) Issuing instructions to employees for
implementation of policy to review company's progress.
(iv) Appointing their subordinates like Managing
director, Manager, Secretary and other employees.
(v) Acting in accordance with the Articles of the
(vi) Act in Good faith in order to promote the
objects of the company
(vii) Perform duties with due and reasonable care
(i) Duty to disclose his name, address and
(ii) Duty to disclose his shareholding and interest
in Contracts of the company.
(iii) Duty to hold minimum qualification shares
within two months after his appointment.
(iv) Duty to issue prospectus and fix the minimum
(v) Duty to take care that prospectus should not
contain any false or misleading statement.
(vi) Duty to confirm the required disclosure in the
prospectus as required by the Act.
(vii) Duty to sign in the prospectus before
submitting it to the Registrar of Companies
(viii) Duty to deposit application money in a
scheduled Bank and its utilisation in accordance with the specification given
in the Act.
(ix) Duty to file Return of Allotment of Securities
with the Registrar.
(x) Duty to arrange for making payment of Dividend
(xi) Duty to forfeit and transfer shares.
(xii) Duty to file all the reports and resolutions
as required by the Act with the Registrar of Companies.
(xiii) Duty to carry out all o ther activities as
specified in the Act in time.
(xiv) Duty to call on an Extraordinary General Body
Meeting, if necessary.
(xv) Duty to call statutory and annual general
meeting of the company