UNIVERSITY INSTITUTE OF LAW
PANJAB UNIVERSITY REGIONAL CENTRE, LUDHIANA.
COMPANY LAW ASSIGNMENT:
“DIRECTORS OF A COMPANY UNDER COMPANIES ACT, 2013.”
SUBMITTED BY: SUBMITTED TO:
VANSHIKA MOONG MS. RAJINI BAGGA
B.A.LL.B. 8TH SEMESTER ASST. PROFESSORS
ROLLNO. 62 PURC, LUDHIANA.
TABLE OF CONTENTS
ACKNOWLEDGEMENT
I would like to express my sincere gratitude to all those who helped me complete this
project successfully.
First and foremost, I would like to thank my class teacher, Mrs. Rajini Bagga, for her
constant support, valuable guidance and encouragement throughout the process. She
inspired me to work hard and guided me whenever I faced any difficulties.
I would also like to acknowledge my classmates for their camaraderie and assistance
during the project.
Finally, I would like to thank my family for their unwavering support, for motivating me
and boosting my morale when I was stressed. Without their unconditional love and support
this project would not have been possible.
VANSHIKA MOONG
BALLB, 8TH SEM
“DIRECTORS OF A COMPANY UNDER COMPANIES ACT, 2013”
I. INTRODUCTION:
A company is a separate legal entity and is termed as a juristic person, it is just an artificial
person and has its existence only in contemplation of law. A company cannot act on its own.
It requires some driving force or human agency that can carry out the business and other
affairs of the company.
These affairs of the company or the corporation are delegated to the “Directors”, who in turn
act as agents and perform the required functions for the company or the corporation.
II. MEANING OF DIRECTOR:
In simple terms, the 'director' is the supreme executive authority in the company, who is
entrusted with the management and control of the company's affairs. Generally, a company
has a team of directors, which are ultimately responsible for the entire management of the
company's state of affairs. These teams of directors are collectively known as the 'Board of
Directors'. In ideal corporate governance practice, it is the team of directors that ensures the
protection of the stakeholders of the company and of other members of the company.
The term 'director' is defined under Section 2(34) of the Companies Act, 2013. It states that
a 'director', "means a director appointed to the board of a company. " The definition provided
under the 2013 Act is not an exhaustive one.
This section corresponds to Section 2(13) of the Companies Act, 1956. It defines a director
as "any person occupying the position of director by whatever name called".
According to Section 5(2) of the Small Coins (Offences) Act, 1971 (repealed), the term
'director' in relation to a firm is said to be the partner of the firm. Whereas, if the term is used
in relation to a society or association, it connotes the person who has been conferred with the
management and control of the affairs of that particular society or association under the
concerned rules.
In the case of Agrawal Trading Corpn. v. Collector of Customs (1972), it was held by the
Apex Court that the meaning of the term 'director' in relation to a firm connotes to the partner
of that firm.
III. MEANING OF BOARD OF DIRECTORS:
In simple layman's language, as defined under Collin's dictionary, the term 'board meeting'
means a meeting held by the board of a company or any organisation. According to Section
173 of the 2013 Act, after the formulation of a company, a meeting of the board of directors
should be conducted within thirty days. Also, there should not be a gap of more than 120 days
between two consecutive meetings. The mode of conducting such board meetings is
enumerated under Section 173(2) of the 2013 Act.
