Responsibilities and duties of directors

Responsibilities and duties of directors

(1) No director or of a company shall do anything to derive personal benefit through the company or in the course of conducting the business of the company.

(2) If any person has derived personal benefit in the course of business of the company in contravention of Sub-section(1), the company shall recover the amount involved in the matter from such director as if such amount were a loan.

(3) Any person appointed as a director of a public company shall, prior to assuming the duties of his office, take an oath of secrecy and honesty in a format as prescribed.

(4) Every director and officer of a company shall, in discharging their duties, act honestly and in good faith, having regard to the interest and benefit of the company, and exercise such care, caution, wisdom, diligence and efficiency as a reasonable and prudent person exercises.

(5) The company may recover damages for any loss or damage caused to the company from a director who does any act with an ulterior motive, causing such loss or damage to the company, in contravention of Sub-section (4).

(6) It shall be the duty of every director to comply with this Act, memorandum of association, articles of association of the company and the consensus agreement.