Director...!!!

A single word but a whole corporate world depends on it.
A basic requirement to form a company is existence of director no company can be formed without a him.
One can say that a company is incomplete without a director even in the definition of a company  it is specifically States that:-
- a public company limited by shares must have at least 3 directors and;
- a private company limited by shares must have at least two directors and;
- they must be at least one director in a one person company

A director is a duty bound person who is responsible for the acts done by him on behalf of the company.

Who is an authorized signatory??
An authorized signatory is a person who is authorized to sign all the documents either it may be statutory, related to finance or it may be concerned to any other department.
Basically an authorized signatory is a director of a company who is authorized to sign all the relevant documents which determines the legality of such document.

Being director is such a tough task he is the one who is answerable to;
-Company
-shareholders
-various legal authorities
-Creditors
-Debtors
-Employees & colleagues
- and all other stakeholders  

To eliminate such hindrances and other issues related to their stake in the company small shareholders have right to appoint a director under section 151 which will take care of the rights of the small stakeholders.

Being such a responsible person in the corporate world a director must also have some ethical standards;

-He must be transparent to his other directors and stakeholders;
-He must not make any hidden profits with the recurring business;
-He must not adopt any unethical way of business;
-He must not take any undue advantage of being a director of any company;
-He must take a proper due diligence before taking any action with respect to company;
-He must be in the boundary of professionalism;

It has now been a trend to be a director of a company, but the youth of today must know the importance and responsibilities being a director of a company, with this upcoming issues the regulatory has taken a step under section 165 of the companies act 2013 to restrict the number of directorship in public companies to 20, which will protect the interest of the stakeholders at a large.

Taking care of many unethical standards and frauds made by directors of a company the regulators have also made provisions under the section 172 of the companies act 2013, there are also many directors finding the loopholes in the provisions of the law  for evasion which is unethical.

A company is a separate legal entity which is formed for the benefit of its stakeholders as well as the owners/promoters (which are basically the directors of the company) it is the duty of the directors to promote and grow in such a way which would be beneficial to them as well as the stakeholders of the company as it's only the stakeholders who have interest and trusted with the blind eyes on the directors.

Article By:-
Saheb Dumbwani.