Directors DIN, Types of Directors; Appointment/ Reappointment, Disqualifications, Vacation of Office, Retirement, Resignation and Removal, Duties of Directors; Rights of Directors; Register of directors and key managerial personnel and their shareholding Loans to Directors; Disclosure of Interest; Declaration by the Directors; Loan and investment by company

A company cannot walk into a bank, sign a cheque or sign a lease. It is a legal person with no hands. Every signature on a Mumbai builder's flat agreement is really the act of a few individuals the law calls directors. Because they hold other people's money and can bind the company, the Companies Act 2013 decides who may become one, how they are appointed and removed, what they owe the company, and when they may lend the company's money to themselves. This topic walks through that chain, step by step.

In two minutes

A director is an individual appointed to the Board who must hold a DIN, be appointed and removed in the way the Act prescribes, avoid the section 164 disqualifications, perform the section 166 duties, disclose every interest (s.184), and cannot be lent the company's money except as s.185 allows.

The rest of this chapter

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