Question

Answer the following question:

Explain the duties of the Director.

Answer 1

The duties of Director:

(A) Statutory duty: The duties which are imposed on the directors by the Companies Act are called the statutory duties. The statutory duties are:
(1) To file returns of allotment with the Registrar within a period of 30 days of allotment of shares.

(2) To act in accordance with the provisions made in the Articles of Association of the company.

(3) To disclose interest if the director is directly or indirectly concerned or interested in a contract of the company. He should disclose the nature of interest to the Board In a Board meeting.

(4) To attend the Board Meetings regularly unless it is impossible to do so for reasons beyond their control.

(5) To authenticate and approve financial statements.

(6) To prepare and place before the Annual General Meeting. The Balance Sheet and Profit and Loss Account including the report of the Board of Directors. (7) To appoint the first auditor or auditors of a company within one month of the date of incorporation of the company.

(B) General duties: The general duties include the duties which the Directors are obliged to perform in the capacity of trustees, agents. Managing partners and the duties required to be performed under the general law of the country.
(1) To act in good faith and also for the benefit of the company and not to make any secret profit out of the business of the company.
(2) To act with such care, skill, and diligence as can be expected from men of their knowledge, experience, and status.
(3) To perform their duties personally and not to delegate them to others, unless specifically permitted by the Articles.
(4) To manage the affairs of the company efficiently so as to avoid the charges of negligence or breach of trust by the members.
(5) To take proper care of the assets and property of the company.