Justify the following statement:

Directors have to work as a team.

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1 Answers

  • Directors have to work as a team of “Board of Directors” and not individually.
  • He exercises the power as a Board which is subject to provision of the Act.
  • Director is a representative of shareholders so he has to work collectively in the best interest of the company and its shareholders.
  • He cannot take decisions alone on behalf of the company.
  • Thus, directors have to work as a team.

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