A director is an individual who has been appointed to the board of directors by the shareholders in the general meeting of the shareholders. He is appointed to be a part of the management branch of the company and acts as a link between the company and the shareholders.
Section 2 (10) of the companies act 2013 states the appointment of directors by the shareholders. However, not all types of directors are appointed by shareholders, some can also be appointed by the Board of directors themselves, such directors are usually temporary directors.
Often the question of a company being a director in another company or partnership firm comes before. But a company cannot be a director in another company, as directors are individuals who have a mind of their own and a company does not have a mind of its own. Therefore it does not qualify to become a director. According to section 149 (1) of the Companies Act 2013, A director can only be an individual i.e. a natural person.
Talking about the appointment to a director, before the shareholders elect the directors to the board, there are certain pre-requisites before such appointment. Section 152 till section 154 of the Companies act 2013, lays down these pre-requisites as follows:
The appointment of directors is governed by the Companies Act of 2013. The set procedure must be followed to avoid any legal consequences.
This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.