Justify the following statement: Directors are managing partners.
Justify the following statement:
Directors are managing partners.
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- Directors have to work as a team as Board of Directors, not as an individual.
- The powers by Board are subject to provisions of the Companies Act and Memorandum and Articles of Associations.
- Director is required to perform his functions.
- He represents shareholders to conduct and manage the business of the company on their behalf.
- They are entrusted with vast powers of management and perform several functions which are proprietary in nature like allotment of shares, raising of loans, investing funds of the company.
- This is because they themselves are significant shareholders of the company.
- In fact, they are the most active shareholders of the company.
- Thus, Directors are the managing partners of the company.
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