Amendment To Appointment And Qualification Of Directors

Although, a company is an artificial person having its independent existence distinguished from its members, the affairs of the company are monitored and regulated by its management which is the board of directors who act as its brain. These directors are designated with numerous powers including power to make calls for shareholders with respect to money unpaid on their shares, authorization of securities buy-back, issue of debentures, borrowing money, investment of funds, grant of loans, diversification of business, corporate restricting, etc.

Directors act as the trustee as well as agent of the company which has appointed them. It is important for them to act with reasonable care with due-diligence exercising their skill. Owing to the vital roles played by the directors in running of the company, it is necessary that they are appropriately qualified for the said position. Section 164 of the Companies Act, 2013 lays down the basic criteria stating the eligibility