Adding a new partner to a business
Board of directors is responsible for making strategic and operational decisions of the Business. They also ensure that company meets all of its statutory obligations. It is the shareholders who decide and select a Director to manage the company. According to Companies Law, Public Limited Company has to have three and Private Limited Company has to have two directors. There are various reasons that bring in an effect to appoint or change the board of Directors.
Whenever removing a Director form a company, it is mandatory to still have the required number of Director even after the removal of the previous Director. A Digital Signature is needed from the proposed Director and resignation will be needed from the leaving Director in order to make add or remove a Director from a company. Here are more details you must know to add or remove a director or a partner from the company.
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Responsibilities of a Director
According to the Companies Act 2013, following are the responsibilities of a director:
1. To act in accordance with the responsibilities mentioned in AOA:
Article of association clearly mentions scope of the power of directors within the company, the responsibility of the director is to work within this scope.
2. To pursue the objectives of the company:
The activities of a director must pursue the objectives of the company i.e. the Directors should justify its position by getting the maximum benefit of resources.
3. To work for best interest of company and its stakeholders:
A director must act reasonably to ensure the best interest of the company and its stakeholders (shareholders, employees and others who may be at stake due to activities of the company).
4. To perform with due diligence:
Its responsibility of the director to employ skills, knowledge and due diligence to work for best interest of the company.
5. To understand the conflict of interest:
Director must understand and differentiate between personal interests and company’s interests so that company may avoid all type of costs that may arise due to conflict of interest.