Duties of Directors: An Analysis under the Companies Bill, 2011

Author : V S Warrier
The law relating to companies in India is contained in the Companies Act, 1956. The Companies Act, 1956 (The Act) is a consolidation of existing laws, statutory rules and certain principles laid down in decisions of the Courts in India and England. The Act of 1956 substantially incorporates provisions of the English Companies Act, 1948.
A company means, a company formed and registered under the Companies Act, 1956 or under any of the preceding Acts. A company is a legal person who is living only in the eyes of law. It’s a creation of law which lacks both body and mind. It cannot act, just like a human being. It can act only through some human agency. Directors are those persons through whom company acts and does business. They are collectively known as Board of Directors.
Sections 252 – 323 of the Companies Act, 1956 deal with the appointment of directors, remuneration of directors, disqualification of directors, vacation of office by directors, Meeting of Board of Directors. Board of Directors is the brain and the only brain of the company which is the body, and the company does act only through the board of directors.
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