1.

Explain the duties of a Director.

Answer»

A director’s relationship with a company is regarded as fiduciary in nature. It means his duty is full of trust, care, and good faith.

The duties of directors can be categorized into two heads:

1. Statutory Duties:

  • To file a return of Allotment. 
  • To act in accordance with the Articles of the company. 
  • To disclose an interest in a transaction. 
  • To attend Board meetings.
  • To appoint first Auditors of the company.

2. General Duties:

  • Duty of good faith i.e. he must act in the best interest of the company.
  • Duty of care i.e. he must take utmost care in the performance of work assigned.
  • Duty not to delegate i.e. he is required to perform his function personally. He may delegate in case of emergency.


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