Justify the following statement: Directors play a triple role.
Justify the following statement:
Directors play a triple role.
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- Directors play a triple role i.e. in the form of an agent, as a managing partner, and as a trustee.
- As an agent, the director deals skillfully, carefully, and elegantly while representing the company with outsiders.
- As a managing partner, the director acts as a representative of the shareholder and manages the company on their behalf.
- As a trustee, the director acts as a guardian of the interest of shareholders and a company.
- They use the company’s funds in the most appropriate manner and cautiously.
- They are also the trustee of all the assets of the company.
- Thus, directors play a triple role.
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