Directors are persons duly appointed by the company to direct and manage the business of the company. A Director is a member of the board of people that manages and oversees the affairs of a business. He or she is entrusted with the responsibility of determining and implementing a company’s policy. He or she is the alter ego of a company, he is a corporate governor in charge of the affairs of a company. Every company is required to have at least one director.
Generally, in most countries, the following persons cannot be appointed as directors of a company:
- an infant under 18 years of age,
- a lunatic or person of unsound mind,
- a corporation other than its representative appointed to the board for a given term.
Appointment of Directors
He or she may be appointed in the following ways:
- By subscribing to the Memorandum of Association of the company,
- By being named the first directors in the Article of Association of the company,
- By ordinary resolution of the members at a general meeting,
- By members at the Annual General Meeting re-electing another director in the case of death of a director for the tenure of the deceased director,
- By Board of Directors, in the event of a casual vacancy arising out of death, re-assignation, retirement or removal of a director pending the next Annual General Meeting, and
- Appointment by a third party pursuant to powers conferred in the company’s Memorandum of Association.
Duties of a director
There are a lot of things a director could be responsible for.
- Develop and implement ideas for growth and management
- Manage business operations
- Enforce company policies
- Organize meetings with staff members and shareholders
- Manage other employees and delegate duties
- Ensure records are properly maintained
Can a company be a director of another company?
A company may be the Director of another company. This can be possible where the company appoints or nominates a representative to act on its behalf as director in the other company.
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