Duties
of Directors
(1) Subject to the provisions of this Act, a
director of a company shall act in accordance with the articles of the company.
(2) A director of a company shall act
in good faith in order to promote the objects of the company for the benefit of
its members as a whole, and in the best interests of the company, its
employees, the shareholders, the community and for the protection of environment.
(3) A director of a company shall
exercise his duties with due and reasonable care, skill and diligence and shall
exercise independent judgment.
(4) A director of a company shall not
involve in a situation in which he may have a direct or indirect interest that
conflicts, or possibly may conflict, with the interest of the company.
(5) A director of a company shall not
achieve or attempt to achieve any undue gain or advantage either to himself or
to his relatives, partners, or associates and if such director is found guilty
of making any undue gain, he shall be liable to pay an amount equal to that
gain to the company.
(6) A director of a company shall not
assign his office and any assignment so made shall be void.
(7) If a director of the company contravenes
the provisions of this section such director shall be punishable with fine
which shall not be less than one lakh rupees but which may extend to five lakh
rupees.
DISCLAIMER: THE
ARTICLE IS BASED ON THE RELEVANT PROVISIONS AND AS PER THE INFORMATION EXISTING
AT THE TIME OF THE PREPARATION. IN NO EVENT I SHALL BE LIABLE FOR ANY DIRECT
AND INDIRECT RESULT FROM THIS ARTICLE. THIS IS ONLY A KNOWLEDGE SHARING
INITIATIVE.
THE AUTHOR
– CS DEEPAK SETH (ASSOCIATE PARTNER HELPINGHANDS PROFESSIONALS LLP) AND
CAN BE REACHED AT CONTACTHHPRO@GMAIL.COM OR 9910248911.
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