Understanding Rights, Duties and Liabilities of a Director in a Company

Ishita Ramani | Last updated: 04 June 2024

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A company director acts as the 'mind' of an artificial legal entity, making decisions and guiding its operations. This article outlines the crucial rights, duties, and liabilities associated with this role, emphasising the need for directors to act honestly and in the company's best interests. It covers individual and collective rights, such as examining records and appointing a chairman, as well as duties like avoiding conflicts of interest and acting with care. The article also details potential liabilities, including those arising from misrepresentation or failure to comply with regulations.

A company is an imaginary person, ethereal and invisible. A living being possesses both hands and a mind, which enable them to take action, making them capable of making decisions and exhibiting knowledge and intention. Conversely, a corporate entity, being an artificial individual, does not possess any of these attributes. It must thus act via a living person. The companys operations are overseen by the directors. All of the information on the duties, rights, and liabilities of directors will b

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About the Author

Ishita Ramani

Director - Operations

She is a young woman entrepreneur and currently the Operations Director at ebizfiling India Private Limited. In her entire career so far, she has led a team of 50+ professionals like CA, CS, MBAs, and retired bankers. Apart from her individual experience on almost every facet of Indian Statutory Compliance, she has bee ... Read more

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