Business Environment and Legal Aspects of Business

1 Companies Directors: Appointment, Power Duties and Liabilities
•Appointment of Directors

•Meaning:
Appointment means selecting a person to become a director of a company to manage its affairs.

•Key Points:

•Who Appoints Directors?

•First directors are usually named in the company’s incorporation documents.

•Later, directors are appointed by shareholders in the General Meeting.

•The Board of Directors can also appoint directors in some cases.

•Eligibility:

•Must be a natural person (not a company or firm).

•Must have a Director Identification Number (DIN).