Pitfalls and Safeguards in the Obligations of Directors under Indian Companies Act 2013 | Original Article

ABSTRACT:

ABSTRACT

Directors must be well aware that as company’s directors they are individually subjected to legal duties in their capacities. Additionally, the companies are autonomous legal entities subjected to legal controls as well as it has been ensured by the directors that these legal controls are compiled by the companies. A company's commercial success within the regulatory framework depends on an individual that manages the company, therefore, it is essential that individual as a director must be fully aware of his responsibilities as well as guidelines and principles’ appropriate management knowledge. A corporation’s management is dealt by the corporate governance. Various strategies controls and guides businesses within the permitted legal and regulatory framework. A company is ultimately led by the Board of Directors for its stakeholders’ good. This deals with balancing social and economic goals, societal and individual objectives. The Directors must also be aware of the pitfalls, if they are not acting in accordance with the reasonable expectation from their position. The aim of this paper is to study the pitfalls and safeguards under the Indian Companies Act2013 in discharging the responsibilities of directors.