Tag Archives: Companies Act 2013

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Roles and Responsibilities of a Director Under Companies Act, 2013 – Pitfalls and Safeguards

1. Duties and Responsibilities of Directors.

1.1. The erstwhile Companies Act, 1956 (‘CA 1956’) contained no statement
of statutory duties of directors, and acts of directors were usually
reviewed in the context of their powers in terms of section 291 of the CA
1956 (which dealt with general powers of the board) and other applicable
laws, and their established roles under common law as laid down in several
judicial precedents1.

1.2. The Companies Act, 2013 (‘CA 2013’) for the first time has laid down
the duties of directors in unequivocal terms in section 166. In summary, the
general duties of directors under the CA 2013 are as follows:
* to act in accordance with the articles of the company, in other
words, to act within powers; 

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