1.

Explain the Role of Directors.

Answer»

Director is a person appointed to manage, direct and supervise the affairs of the company.

The elected representatives of the shareholders are called Directors.

Role of the Directors:

  • He helps the investors to take accurate decision.
  • He has to fill casual vacancies on the board.
  • He has to recommend dividends.
  • He has to issue securities in India or abroad.
  • He manages a company on behalf of the shareholder.
  • He appoints the first auditor of the company.
  • He can appoint or remove Key Managerial Personnel.
  • He can borrow the money on behalf of the company.
  • His role is full of trust, loyalty, care, and good faith.
  • Directors act as a trustee, agent and managing partner for the company.


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