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Who are the directors?

 


Company directors are people who take up the responsibility of managing the company. They are responsible to promote the success of the business and also benefit the shareholders.

Director -There is no such specific definition of a director in statute, but in general the term “director” defines as any person who is not a minor or a person who together with the other members forms a board of directors and are responsible for forming and managing the company.

A director needs to be rationally diligent with the right kind of skill, knowledge and experience to be able to carry out important roles in the company.

The law permits a public limited company to have at least 3 directors, a minimum of 2 directors in the case of a private limited company and a one-person company can have a minimum of 1 director.

What are the types of Directors?

There are many types of directors. Here, we will discuss the different types of directors according to the Companies Act, 2013.

1. Residential directors – It is mandatory by law that every company should appoint at least one  director who has been residing in India for a total period of not less than 182 days in the previous calendar year.

2. Independent directors – According to Section 149(6) an independent director is an alternate director other than a Managing director who is also known as a Whole Time Director or Nominee Director.

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