Introduction, meaning and definition of director - class-XI

The Central Government shall appoint a Director in the Serious Fraud Investigation Office, who shall be an officer not below the rank of a Joint Secretary to the Government of India having knowledge and experience in dealing with matters relating to corporate affairs.The SFIO is headed by a director not below the rank of a Joint Secretary to the Government of India having knowledge and experience in dealing with the matters relating to corporate affairs.

Generally, in a public company or a private company subsidiary of a public company, two-thirds of the total numbers of Directors are appointed by the shareholders and the remaining one-third is appointed in accordance with the manner prescribed in Articles failing which, the remaining one-third of the Directors must be appointed by the shareholders. The Articles of a public company or a private company subsidiary of a public company may provide for the retirement of all the Directors at every annual general meeting.

As per the provisions of Companies Act 2013, no company shall appoint or re-appoint any person as its managing director, whole-time director or manager for a term exceeding five years at a time.

The representatives of the shareholders are directors of the firm. Shareholders are the owners of the firm who owns certain part of shares in a firm while the directors are the top most level or authority responsible for the determination of company policies.

Generally, the first directors are named in the articles. In such a case, there is no appointment. The general practice is that the promoters of  the company select the first directors and name them in the Articles.

Board meetings are formal meetings of the board of directors of an organisation held at definite intervals to consider policy issues and major problems. Hence the meetings at which the directors take decisions is called a board meeting.

A Board of directors is a group of individuals elected to represent shareholders. The Board's mandate is to establish policies for corporate management and oversight, making decisions on major company issues. Hence the body of directors which looks after the management of a company is Board of Directors.

Director is a person elected by the shareholders of a company. He has the responsibility for determining and implementing the company's policies.   

Generally, in a public company or a private company subsidiary of a public company, two-thirds of the total numbers of Directors are appointed by the shareholders and the remaining one-third’s appointment is made as per Articles and failing which, shareholders shall appoint the remaining one-third. A Minimum Number of Directors Required in a public Company are three directors. The Companies Act does not prescribe any qualifications for Directors of any company. 

Director is an appointed elected member of the board of directors of a company who with other directors has the responsibility for determining and implementing the company's policies. Hence, directors are the representatives of shareholders.

Under the Companies Act, a director retiring by rotation can be re-appointed if the company passes the necessary resolution at the general meeting.

A board of directors is a group of individuals elected to represent shareholders. A boards mandate is to establish policies for corporate management and oversight, making on company's decision. Every public company must have a board of directors .

Qualification shares is a share of common stock that a candidature of company's board of directors is required to own within two months of his appointment. The term difference does not reflect a difference in the properties of a qualifying share to common shares held by other shareholders. Instead it refers to that a member of the board of directors must hold a vested interest in the operations of the enterprise in form of company stock.

Section 149(3) of the Companies Act, 2013, mandates that every company must have at least one director who has stayed in India for a total period of not less than 182 days during the financial year.

Appointing a director as a company secretary often involves significant changes to their role and compensation, requiring a special resolution by the company members.

Calling up the Board Meeting is not a power of a Secretary though Company Secretary is appointed as a key managerial personnel. Only directors of the company can call for a board meeting.

A special notice is requested for a resolution when a director is to be removed before the expiry of his period of office. Special notice is issued by a company when a resolution is to be moved. It is issued when the company wants to remove a director from his/her office.

A director should obtain his qualification shares within two months of his appointment. When a new director is appointed in a company, he/she should be given his qualification shares within two months o his appointment in the company. Certain shares of the company is alloted to the director when he/she holds the office.