Can directors be personally liable in a private limited company?

Directors are not personally liable, because a company is a legal person. However, the concept of the lifting of the corporate veil shifts the liability. This usually is seen when the directors try to set off their illegal acts under the company name.

Do private limited companies have a board of directors?

By law, every private limited company must have at least one company director. The directors of the company make up its board of directors. A public limited company must have at least two directors. Company directors are responsible for ensuring the business complies with company law.

What is role of director in Pvt Ltd company?

A private limited company director is a person who acts on behalf of the company. S/he controls manages and directs the company and its members. Collectively the directors are known as the board of directors. They handle the company operations and do all the major policy and decision-making activities.

What rights does a director of a company have?

Statutory Right to Information

• The right of a director to inspect the books and records of the company is a right conferred by the common law in order to enable the director to carry out his duties as a director;
• The right ends when the director ceases to hold office;

How are directors of public companies appointed in India?

Any reappointment of such directors requires fresh shareholders’ approval. Unless the AOA provide otherwise, the remaining directors of a public company and the directors of a private company (a company that restricts the number of its shareholders to 200) are also required to be appointed with shareholders’ approval.

Who are the directors of a private limited company?

A private limited company director is a person who acts on behalf of the company. S/he controls manages and directs the company and its members. Collectively the directors are known as the board of directors. They handle the company operations and do all the major policy and decision-making activities.

How many board of directors are required in India?

At least 2 directors; new company law regulations mandate the appointment of a local director. Consequently recommend 3 directors: 1 from India and 2 from parent company’s location. For more information on directors’ duties, see our Global Guide to Directors’ Duties.

What are the rights of small shareholders in India?

A small shareholders’ director is an ‘independent director’ under the Companies Act and is not liable to retire by rotation; however, his or her tenure cannot exceed a period of three consecutive years, and at the end of the tenure he or she is not eligible for reappointment.