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Meaning of Board of Directors

Byadmin

Aug 23, 2022

 In the case of a company, the Board of Directors means the Board of Directors of the company. According to section 252 (3), the directors of the company are jointly called the Board of Directors or the Board in this Act. 

 “Only persons can be directors. (only natural person can be directors)

An amalgamated institution, association or firm cannot be appointed as the director of a company, only a natural person can be appointed as a director. (Section 253) 

If all the members of a company are amalgamated bodies, then the provisions of this section can be followed only if, 

1. There is no provision for qualification shares of the operators in the Articles of the Company.  , so that outsiders can be appointed as directors of the company.  Or 

2. Members who are amalgamated organizations, by appointing their nominees, transfer their eligibility shares to them.  

The Board of Directors is the main managerial organ of the company, which is constituted by the directors elected by the shareholders.  All important decisions related to the management and operation of the company are taken in the meetings of the Board of Directors.  In fact, the entire management system of the company remains centered in the board of directors, it takes all the decisions.  And the management gets the implementation of all the decisions through the director or manager.

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