DIRECTORS OF THE COMPANY
DIRECTOR:-
Are the
persons who are appointed by the shareholders normally for the purpose of
managing the company to look after day to day activities of the company affairs.
Individually
called director and collectively called as Board of Directors.
BENEFIT OF BEING A COMPANY DIRECTOR:-
Director may increase your personal profile and status among your peers. Skills development – a directorship is a different role than an executive. The role of a director is for the strategic direction and governance of the company.
APPOINTMENT OF DIRECTORS:-
- Appointed by promoters
- Appointed by the subscribers of memorandum
- Appointed by share holders
ROLES OF DIRECTORS:-
- Establishment of policies and objectives
- Selecting, appointing and supporting CEO
- Reviewing the performance of staff
- Approval of annual budget
- Availability of financial resources
- Fixing the salary and compensation of company management
POSITION OF THE DIRECTOR:-
Acting as
agent
Director act
as trusted
Director
acting has managing partner
DUTIES OF DIRECTOR:-
To determine
the amount of minimum subscription
To prepare
the statutory report and file a copy of this with the registrar
To conduct
extra ordinary general meeting of the company
Submit a
copy of statutory report to all the members of the company
To approve
the profit and loss account and balance sheet before submitting to auditor
To prepare
annual report and place it in the annual general meeting
To pay
dividend out of divisible profit
To manage
day to day affairs of the company
To conduct
bold meeting at least once in 3 months
DIRECTORS KEY POINTS:-
- Responsible for framing the policies
- Director will not take part in the day to day activities of the company
- The directors are appointed by shares holders
- Director can become a director for 15 companies
- All types of company whether public / private the appointment of directors is compulsory
- The duration of direction is 3 years
- Directors are the agent of shareholders of company
KEY PERSONS OF COMPANY ADMINISTRATION:-
- Managing director
- Whole time director
- Secretory
- CFO (CHIEF FINANCIAL OFFICER)
- Resident director
- Independent director
MANAGING DIRECTOR:-
He is a
director of company who has given special powers by AOA ( articles of
association ). He is the head for executive structure of the company and he is
one among the Board of Director.
He looks
after day to day administration and management of the company on behalf of
other Board of Directors.
THE APPOINTMENT OF MANAGING DIRECTOR ARE AS FOLLOWS:-
Appointed by
promoters
Appointed by
subscribers of MOA
Appointed by
the company
Appointed by
Board of Directors
Appointed by
deeming subscribers
DUTIES OF A MANAGING DIRECTOR:-
To bring a
new business
To maintain
good relationship
Appoint
qualified staff
Report to
BOD
RESPONSIBILITIES OF A MANAGING DIRECTOR:-
- To manage day to day activities
- To motivate, develop the management team
- To take the leadership responsibilities
- To check internal audit
- To make the policies and strategies / procedures
POWERS OF A MANAGING DIRECTOR:-
To control
the financial expenditure of the company
To supervise
the work of the employee
To enter the
agreement for the purchase and sale of assets
To negotiate
with the government for the sanctioning of business plans
To maintain
the stock verification document
KEY POINTS
OF MANAGING DIRECTOR:-
Managing
director is responsible for implementing the policies
Managing
director will take part in day to day activities of the company
These are
appointed by Board of Director
A person can
act as managing director only for 2 companies
The
appointment of managing director is not compulsory
The duration
of managing director will be up to 5 years
WHOLE TIME DIRECTOR:-
Whole time
director are the directors who concentrate the fill time that is whole time working
hours to the company.
SECRETORY:-
He is the
member of institute of company secretory of India appointed to perform the
duties given by the company act and also by Board of Directors.
CFO (CHIEF FINANCIAL OFFICER):-
He is an
officer responsible for managing financial risk of the corporation. He does the
record keeping and financial planning.
RESIDENT DIRECTORS:-
These are
the directors who stay 183 days in India
and carry the activities of company directors.
INDEPENDENT DIRECTORS:-
This
Director is one among Board of Director who does not have any material
relationship with company and he does not possess the shares of the company.
