Describe the rights, duties and responsibilities of the Board of Directors. What are the restrictions on the rights of operators? [Describe the powers, duties and liabilities of the Board of Directors. What restrictions have been placed on the exercise of the director’s powers.
Rights of Directors
In the Companies Act, the directors do not have any rights, whatever rights the directors exercise are the rights of the board of directors. Therefore, the authority of the director means the rights of the board of directors. The rights of operators can be divided into two parts
(I) Common Rights- Common rights can include the following
(1) All rights related to management – The Board of Directors has been given the right to exercise all the rights related to the management of the company, which are mentioned in the Councilor’s Memorandum and the Councilor’s Article.
(2) Right to inspect the books of accounts Every director of the company has the right to inspect the books of accounts, statutory books and other forms.
(3) Right to get information of meetings – The operators have the right to get information of all the meetings of the company, this information should be in writing. Such intimation will be sent to their registered address.
(4) Power of control over the officers and employees The directors of the company have full right to control the secretary, treasurer, manager and employees of the company, as well as the board of directors can also give special instructions to these officers.
(5) Right to be remunerated – Every director of the company has the right to receive salary and allowances in the form of remuneration in return for his services rendered in accordance with the Companies Act and Articles.
(6) Other general rights-to participate in the meetings of the Board of Directors, presented in this meeting:
The other general rights of the directors are to express their views on any matter, to appear in the meetings of the committees appointed by the company and to exercise their powers. (II) Specific rights- The following rights can be given effect only by the board of directors and in the meeting of directors
(A) To demand from the shareholders for the unpaid money on the shares.
(B) to issue debentures.
(C) Taking loan in any form other than debentures.
(D) Appropriation of company’s money.
(E) Taking loan.
In addition to the above, the following functions are also performed by the directors in their meetings.
(A) Filling the vacancy – If a vacancy occurs accidentally, it is filled by appointing a new director. (B) Appointment of manager The director can appoint any person as manager. (C) Contribution to Security Fund – Operators can contribute to the National Security Fund and account it in profit and loss account.