- January 19, 2018
- Posted by: admin
- Category: Executive Management
The success of the company depends, to a very large extent, upon the competence and integrity of its directors. It is , therefore, necessary that management of companies should be in proper hands. The appointment of directors is accordingly strictly regulated by the act. There are now special provisions for preventing management by undesirable persons.
One evil which has been abolished by the Act is that of a company or a firm acting as a director of another company. Now, according to Section 253, only an individual can be the director of a company. No company or firm or association can be appointed as a director.