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What is the relationship between a company and director(s)?

Submitted by LegalWizin on Fri, 11/15/2019 - 10:40

As the company is an artificial person created by law, it cannot act on its own. To carry out its day to day operation it needs a natural person who manages and runs operations smoothly. Here comes the role of Directors, they are appointed by the owners i.e. shareholders of the company to manage and run the operations in the best interest of the stakeholders with in good faith and to promote the objects of the company. The relationship between the company and director is of Employer and Employee or trustee relationship where the Directors are a trustee for the shareholders.

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