Professional Documents
Culture Documents
The directors of a company are its eyes, ears, brain, hands, nerves and
other essential limbs, upon whose efficient functioning depends, the
success of the company. The directors formulate policies and establish
organisational set up for implementing those policies and to achieve
the objectives as contained in the Memorandum, muster resources for
achieving the company objectives and control, guide and direct and
manage the affairs of the company.
6.Risk Mitigation
Directors are expected to identify and manage obstacles that may
prevent the organisation from reaching its goals. The whole board must
be involved in risk management, particularly around financial matters
and legal compliance.
7.Procuring resources
Financial resources, human resources, technological resources,
business relationship are the key resources that are essential to an
organisation’s success. Boards play an important role in helping the
organisation procuring the resources.
The Board shall not exercise any power or do any act or thing which is
required, whether by this or any other Act or by the memorandum or
articles of the company, to be exercised or done by the company in
general meeting.
For Example
The Tata group conglomerate in India carries out various CSR projects,
most of which are community improvement and poverty alleviation
programs. Through self-help groups, it is engaged in women
empowerment activities, income generation, rural community
development, and other social welfare programs. In the field of
education, the Tata Group provides scholarships and endowments for
numerous institutions.
The group also engages in healthcare projects such as facilitation of
child education, immunization and creation of awareness of AIDS.
Other areas include economic empowerment through agriculture
programs, environment protection, providing sport scholarships, and
infrastructure development such as hospitals, research centers,
educational institutions, sports academy, and cultural centers.
TYPES OF DIRECTORS
1. Residential Director: – According to Section 149(3) of Companies
Act,2013, Every company should appoint a director who has
stayed in India for a total Period of not less than 182 days in the
previous calendar year.
2. Independent Director: – According to Section 149(6) an
independent director is an alternate director other than a
Managing Director which is known as Whole Time Director Or
Nominee Director. According to Rule 4 of Companies
(Appointment and Qualification of Directors) Rules,2013 these are
the following type of companies which have to appoint
minimum 2 independent directors:-
I} Public Companies which have Paid-up Share Capital-Rs.10
Crores or More; –
II} Public Companies which have Turnover- Rs.100 Crores or
More:-
III} Public Companies which have total outstanding loans,
debenture, and deposits of Rs. 50 Crores or More.
3. Small Shareholders Directors: – Small shareholders can appoint a
single director in a listed company. But this action needs a proper
procedure like handing over a notice to at least 1000
Shareholders or 1/10th of the total shareholders.
4. Women Director: – As per Section 149 (1) (a), there are certain
categories according to which there should be at least one woman
as a director on the Board. Such companies are any listed
company or any public company having. There are types of
directors in women director also:
Additional Directors:-
Any Individual can be appointed as Additional Directors by a
company under section 161(1) of the New Act.
Alternate Directors:-
As per Section 161(2), a company may appoint, if the articles
confer such power on the company or a resolution is passed (if a
Director is absent from India for at least three months).
Shadow Director:–
A person who is not the member of Board but has some power to
run it can be appointed as the director but according to his/her
wish.
CONCLUSION
In today’s era where uncertainty has crept in to such an extent,
that running a business is not as simple as it was when the
demand for the commodity was easily identifiable, consumer was
not much educated, competitors were not playing, social
responsibilities was not weighted and technology not ever
changing.
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