6.Roles and Responsibilities of Directors.pptx

Roles and responsibilities of Directors

1. Roles and Responsibilities of Directors Dr.S.Jayanthi Sobhana Department of commerce PA Sri Ramakrishna college of Arts & Science

2. Responsibilities Set strategy:  Determine the company's overall strategic direction and objectives.  Oversee operations:  Supervise the daily operations of the business.  Approve budgets and plans:  Make significant operational and financial decisions, often by approving budgets and long-term plans.  Appoint senior management:  Appoint and hold senior management accountable for their actions and decisions. 

3. Legal and ethical duties Act in good faith:  Carry out their duties in good faith and for the best interests of the company.  Exercise care and diligence:  Apply reasonable skill, care, and diligence in all their actions.  Avoid conflicts of interest:  Refrain from situations where their personal interests conflict with the company's interests.  Ensure legal compliance:  Guarantee that all business operations and filings comply with relevant laws and regulations.  Uphold ethical standards:  Promote and enforce a culture of ethical behavior and integrity .   Protect company assets:  Safeguard the company's property, money, and confidential information from personal use or misuse. 

4. Agent : The director acts as an agent of shareholders and promotes the objects of the company so that the company can earn profits and increase the intrinsic value of the share and earning of the company . Employee : Any whole-time director appointed by the Board of Directors and approved by the shareholders of the company acts as an employee of the company by managing the day-to-day affairs of the company. Officer : Director is treated as an main officer of the company and shall be liable for penal consequences under various statues, if affairs of the company are not in compliance with the Companies Act, Income Tax Act, FEMA provisions and other applicable Legal statues defined for various industries. Trustee : Director is treated as trustee of the company. Money and property of the powers are entrusted to and vested in them only as trustees.